Business News Agency June 14, according to reports, analysts predict, as the new Middle East capacity to start production in the next few years, global ethylene glycol (MEG) market will face overcapacity, due to limited demand in the Middle East, a large number of products will be flooding the market , and then change the pattern of international trade flows of ethylene glycol.

Analysis of Main Inc. (CMAI) for ethylene oxide and derivatives business manager TisonKeel said, “This year there will be an unprecedented wave of new ethylene production capacity, about 4 million tons / year, which slightly higher than expected production capacity extension . But in the past month, we have witnessed the world spot price of ethylene glycol softening process, especially in Asia. ”

Ethylene oxide (EO) is second only to the second largest ethylene derivatives of polyethylene, about 14% -15% of consumption of ethylene. About 77% of the ethylene oxide (EO) has transformed into ethylene glycol products, mainly single-ethylene glycol (MEG). The remaining 23% of the ethylene oxide used in the production of pure ethylene oxide (PEO), the product is a reactive compound, because they can not be shipped, only in the domestic market. Analysis step, the company said last year the global demand to reach 17.8 million tons of ethylene glycol is expected in 2014 will grow to about 23.6 million tons. Expected future global demand for ethylene glycol will continue to maintain strong growth momentum, particularly in Asia.

However, North America for polyester (PET) resins and ethylene glycol container market is mature, in part because the region of plastic bottles to continue development of ultra-light, which reduces the amount of PET. On the other hand, global ethylene production capacity in 2010 expected to reach about 25.4 million tons, representing an increase of approximately 15% in 2009. Most of these new production capacity will come from the Middle East, and will focus on several large-scale olefins plant running at full capacity, where petrochemical production base.

The ethylene oxide / ethylene glycol production capacity can account for about 50% of the world, including Kuwait Olefins Company (TKOC) in Shuaiba 100 t / a production capacity; Sabic Yanbu’s YanSab company’s 1.6 million tons / In ethylene oxide / ethylene glycol production capacity; Saudi Aramco and Sumitomo Chemical joint venture in Rabigh Saudi PetroRabigh 110 tons / annual capacity; Sabic and a consortium led by Japan’s Mitsubishi Petrochemical Co., Ltd. joint venture in Eastern Jubail Le 140 tons / annual capacity; Sabic in Jubail, 120 tons / year and Jam Petrochemical Company of Iran’s Assaluyeh 1.4 million tons / year ethylene oxide / ethylene glycol production.

Since very little domestic demand in the Middle East ethylene glycol, the production of most products will enter the market, and thus can be expected that the world trade center will be transferred to ethylene glycol in the Middle East. China is expected to import most of excess capacity products to meet the growing needs of China’s chemical fiber industry. Analysis of Main company that ethylene glycol plant in North America will continue to survive, due to the region for low-cost ethane feedstock advantages, but also a net exporter overall. But the United States will remain a net importer, as more and more factories were shut down, production costs are lower in Canada being the transfer of raw materials.

Smaller companies will be forced to shut down, or carry out production restructuring in 2009 in North America, nearly one million tons / year of ethylene oxide / ethylene glycol capacity forced to close. PDGlycols closed its PDGlycols Beaumont, Texas, two sets of ethylene glycol unit, a total capacity of about 681,000 t / ethylene oxide / ethylene glycol, Dow Chemical Company has closed its Wilton 395,000 tons in the United Kingdom / year ethylene oxide / ethylene glycol plant profit margins as weak demanda and weak.

Author Bio: www.cheaponsale.com contain a great deal of information about mono ethylene glycol,dipropylene glycol,glycolic acid skin care, welcome to visit.

Category: Business
Keywords: mono ethylene glycol,dipropylene glycol,glycolic acid skin care,