Sep 10 2010
Historically, the global petrochemical industry has witnessed very few upheavals that combine effects of energy volatility and depressed downstream demand.
Because of the unprecedented effects of the economic downturn in 2009, SRI Consulting’s (SRIC) World Petrochemicals Program (WP) just announced the 2010 Midyear Update of the Ethylene Segment, showing that world ethylene growth during 2009 through 2011 will increase 17% faster than estimated in the original 2010 scenario.
Demand for all products in most countries and the world increased during the fourth quarter of 2009–through the second quarter of 2010–at a faster rate than the original forecast. This was due to a surge in economic growth combined with some inventory rebuilding in the supply chains. However, a slowdown in the world’s economy is threatening growth in the second half of 2010, mainly due to the tightening of credit in China, slower than anticipated improvement of employment in developed economies, and reduced government stimulus spending throughout the world.
Ed Gartner, Director of the World Petrochemicals Program commented, “The stronger ethylene growth profile in 2009/2010 along with recently identified delays of new Asian and Middle Eastern capacity will result in world operating rates running higher than in the original scenario.”
The 2010 Midyear Update of the Ethylene Segment focuses on supply and demand data for 2009-2011 for the seventeen petrochemical products covered in the ethylene segment. In addition to ethylene, the products updated include polyethylene, the ethylbenzene product chain (five products), the vinyl product chain (three products), the ethylene oxide product chain (five products), and the acetic acid product chain (two products).