Ethylene: Regional challenges in the first half

Recently, market participants said that the US ethylene market will add new capacity in the first half of 2022, the Asian market may have oversupply, and Europe may face tight ethylene supply due to energy supply constraints

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Record petrochemical profit margins are expected to decline in 2022 as global economic activity gradually resumes, according to data from S&P Global Platts

According to the U.

Downstream derivatives demand in Asia declines

In Asia, ethylene demand is likely to remain subdued as downstream products such as styrene monomer, ethylene glycol and polyethylene continue to experience negative margins

Ethylene supply in Asia is also expected to increase, and the resumption of MTO production in China may increase supply

Tight supply in the European market

In Europe, the key drivers of the European ethylene market in the first half of 2022 were high energy and production costs, demand for downstream derivatives, and plant shutdowns

　　Downstream polyethylene demand in Europe remains healthy in 2021, although both plastics processors and producers face rising ethylene and energy costs

　　In the spring, some units will be overhauled, and Total Energy is carrying out the shutdown and maintenance work of its 250,000-ton/year cracker in Feyzin, France

　　Versalis is expected to permanently shut down its 525,000-ton/year cracker at the Italian port of Marghera in 2022 as part of parent company Eni's energy transition strategy, which may further tighten European ethylene supply