Insight
How 3 key trends are reshaping China's olefin industry
Report summary
China is diversifying its ethylene production by technology, feedstock and ownership. Thanks to massive investment, the country’s ethylene self-sufficiency will improve from 58% in 2020 to 83% in 2025 and ethylene equivalent imports will be largely reduced. China's leading petrochemical plants are growing bigger and stronger, which will force some smaller, outdated and uneconomical oil refineries and chemical plants out of business. From an economic perspective, China’s CTO, gas crackers and integrated refinery and petrochemical complexes can compete with US ethane crackers. While MTO investment has stalled, CTO capacity is becoming more concentrated among a few players – even though the pace of development has slowed. As a result of this round of development and rationalisation, we expect China’s overall position in the global petrochemical industry to only improve. This is a challenge to the wider olefins industry for which China has traditionally been a key export market.
Table of contents
- Executive summary
- Changes on China’s olefin horizon
- Integrated refinery and petrochemical plants disrupting the olefins production route
- Gas cracking making its mark in China
- MTO investment stalling, CTO giants emerging
- Global implications
Tables and charts
This report includes 6 images and tables including:
- China steam cracker projects in 2021-2025
- China's ethylene self-sufficiency
- China gas cracker plants
- Annual olefin capacity addition from MTO
- Olefin capacity from major CTO producers
- Ethylene cost and margin by 2025: oil price scenario at US$80/bbl
What's included
This report contains:
Other reports you may be interested in
Commodity Market Report
Global Industrial Production data Q2 2024
Proprietary forecasts for Industrial Production growth and indices to 2050, covering 68 key economies.
$350
Commodity Market Report
North America coal short-term outlook April 2024
Sizeable supply response in Q1 is behind the downgrade to the 2024 thermal coal production forecast.
$5,000
Country Report
Somalia upstream summary
Somalia's nascent upstream industry is hindered by above-ground risk. No oil or gas discoveries have been made. The risk of ...
$3,400