Market Study: Ethylene - China

Introduction

With its market study "Ethylene - China", Ceresana is setting new standards. For the very first time this market report provides complete transparency regarding current and future development, market trends, market size and market growth of the entire ethylene value chain. The entire Chinese ethylene market is analyzed. Attention is also given to various downstream products at various points of the value chain until final end applications.

Dynamic Growth of the Chinese Market

Ethylene is the most important feedstock in the petrochemical industry. Its increasing importance is seen in the dynamic growth in the past eight year period: Until 2013, market volume in China more than doubled. As a result, revenues rose to US$19 billion. Strong growth impulses are created by downstream processing industries: Besides the three polyethylene varieties high-density polyethylene (HDPE), linear low density polyethylene (LLDPE) and low-density polyethylene (LDPE), direct applications of ethylene include chemicals such as ethylene dichloride (EDC), ethylene oxide (EO), alpha olefins, and ethylbenzene (EB).

Gradual Self-Sufficiency Proclaimed Goal

Currently, China not only imports large amounts of ethylene, but also increasingly high-density polyethylene (HDPE), linear low density polyethylene (LLDPE) and low-density polyethylene (LDPE) as well as the polyethylene terephthalate (PET) pre-product ethylene glycol. In its 12th five-year-plan, the Chinese government has included the target of increasing self-sufficiency regarding ethylene and its applications to more than 64% by 2015. In addition to the inauguration of further naphtha crackers, utilization of coal in the production of petrochemical products is to be increased as well.

High Crude Oil Prices Curbing Production

Due to limited own crude oil resources, the petrochemical industry in China is dependent on imports. As import prices rose considerably in past years, domestic producers are incurring problems in producing ethylene at competitive prices. Therefore, the Chinese government has only limited success in providing economic incentives to expand domestic production. Hope for the future is therefore placed on an increase of commercial utilization of CTO technology (coal to olefins). Utilizing the extensive supply of cheap coal in China is designed to render Chinese ethylene production more competitive.

Polyethylene Prime Application

The Chinese polyethylene industry is expected to remain the main consumer of ethylene in China. This plastic is accounting for more than 60% of Chinese demand for ethylene at the moment.

Fewer Imports due to Coal-Based PVC-Production

More than three quarters of the Polyvinyl chloride (PVC) manufactured in China are based on coal by now. Using this production process affords the PVC industry independence from the supply situation on the ethylene market. Given the continuing increase in use of coal as feedstock, Chinese imports of PVC fell notably. Ceresana forecasts Chinese PVC exports to exceed PVC imports on the medium term.

Market for Ethylene Oxide Fueled by Demand for PET

More than three quarters of demand for ethylene oxide in China originates in the production of ethylene glycol, which in turn is mainly used to manufacture PET fibers. In the past, the manufacturing of PET fibers relocated from Western industrialized countries to Asia, China in particular. The second largest application for ethylene glycol is producing PET packaging, especially PET bottles (Ceresana offers a market study on "Plastic Bottles").

Positive Growth Expected for Ethylbenzene/ Styrene

Consumption of ethylbenzene (EB) increases in accordance with Chinese demand for styrene, which is used for the production of various plastics. Consumption of styrene in the manufacturing of the engineering plastics acrylonitrile-butadiene-styrene (ABS) and styrene-acrylonitrile (SAN) will increase at the highest growth rates until 2021. This market profits from a growing electronics, information and communication technology market as well as increasing consumption among the Chinese population.


The Study in Brief:

Chapter 1 offers a complete overview over the Chinese ethylene market: Market data regarding revenues development, demand and production, existing and future capacities as well as trades are explained in detail.

Chapter 2 analyzes the market for derivatives of ethylene. Data on demand, revenues, prices, costs, production, trade and a list of manufacturers including capacities is provided for the most important applications.

Headings 2.1. to 2.3. examine the various types of polyethylene in more detail: high-density polyethylene (HDPE), linear low density polyethylene (LLDPE) and low-density polyethylene (LDPE). Chapter 2.4 illustrates the value creation chain of ethylene dichloride (EDC) via vinylchloride (VCM) to polyvinyl chloride (PVC). Chapter 2.5 analyzes the market for ethylene oxide (EO) and downstream sectors such as ethylene glycol and non-ionic surfactants. The value chain ethylbenzene (EB) via styrene to applications like polystyrene (PS), expandable polystyrene (EPS), acrylonitrile-butadiene-styrene (ABS)/styrene acrylonitrile (SAN) and styrene butadiene rubber (SBR) is described in chapter 2.6.

Chapter 3 offers a useful directory of producers within the ethylene value chain in China. The profiles are clearly arranged according to contact detailed, sales, profit, product range, production sites, and summary profile.

Each profile also includes specific information about the value chain as well as current and future production capacities for ethylene and derivatives. These are split by site and product.

Extensive profiles of 98 manufacturers are given, including BASF-YPC, China National Chemical, Fujian Refining & Petrochemical, Panjin Ethylene Industry, Petrochina, Shanghai Chlor-Alkali, Shanghai Secco, Shenhua Group and SINOPEC. 

Table of Contents

1 Market Data - Ethylene
1.1 Demand
1.2 Revenues
1.3 Production
1.4 Capacities and Trade

2 Market Data - Derivatives
2.1 Polyethylene - HDPE
Demand and Revenues
Production
Capacities and Trade
2.2 Polyethylene - LLDPE
Demand and Revenues
Production
Capacities and Trade
2.3 Polyethylene - LDPE
Demand and Revenues
Production
Capacities and Trade
2.4 Ethylene Dichloride
Demand and Revenues
Production
2.4.1 Vinyl Chloride
Demand and Revenues
Production
2.4.1.1 Polyvinyl Chloride
Demand and Revenues
Production
Capacities and Trade
2.5 Ethylene Oxide
Demand and Revenues
Production
Capacities
2.5.1 Ethylene glycol
Demand and Revenues
Production
Capacities and Trade
2.5.2 Nonionic Surfactants
Demand
Production and Trade
2.6 Ethylbenzene
Demand and Revenues
Production
2.6.1 Styrene
Demand and Revenues
Production
Capacities and Trade
2.6.1.1 Polystyrene
Demand and Revenues
Production
Capacities and Trade
2.6.1.2 Expandable Polystyrene
Demand and Revenues
Production
Capacities and Trade
2.6.1.3 Styrene-Butadiene Rubber
Demand
Production
Capacities and Trade
2.6.1.4 Acrylonitrile-Butadiene Styrene (ABS)/ Styrene-Acrylonitrile (SAN)
Demand and Revenues
Production
Capacities and Trade
2.7 Other Ethylene Applications

3 Company Profiles
Acrylonitrile butadiene styrene (4 Producers)
Alpha olefins (4)
Diethylene glycol (7)
Ethanolamine (4)
Ethylbenzene (7)
Ethylene (21)
Ethylene dichloride (5)
Ethylene glycol (6)
Ethylene oxide (9)
Ethylene propylene diene monomer (4)
Expandable polystyrene (5)
High-density polyethylene - HDPE (9)
Linear low-density polyethylene - LLDPE (7)
Low-density polyethylene - LDPE (7)
Polystyrene (9)
Polyvinyl chloride (8)
Styrene (9)
Styrene butadiene rubber (6)
Triethylene glycol (7)
Vinyl acetate monomer (4)
Vinyl chloride (5)
(Note: Manufacturers may be listed multiple times)

List of Graphs

Graph 1: Demand for ethylene in China from 2005 to 2021
Graph 2: Demand for ethylene in China from 2005 to 2021 - split by applications
Graph 3: Revenues generated with ethylene in China from 2005 to 2021 in billion US$ und billion €
Graph 4: Production of ethylene in China from 2005 to 2021 in million tonnes
Graph 5: Import and export of ethylene in China from 2005 to 2021
Graph 6: Demand for HDPE in China from 2005 to 2021
Graph 7: Revenues generated with HDPE in China from 2005 to 2021 in billion US$ and billion €
Graph 8: Production of HDPE in China from 2005 to 2021
Graph 9: Import and export of HDPE in China from 2005 to 2021
Graph 10: Demand for LLDPE in China from 2005 to 2021
Graph 11: Revenues generated with LLDPE in China from 2005 to 2021 in billion US$ and billion €
Graph 12: Production of LLDPE in China from 2005 to 2021
Graph 13: Import and export of LLDPE in China from 2005 to 2021
Graph 14: Demand for LDPE in China from 2005 to 2021
Graph 15: Revenues generated with LDPE in China from 2005 to 2021 in billion US$ and billion €
Graph 16: Production of LDPE in China from 2005 to 2021
Graph 17: Import and export of LDPE in China from 2005 to 2021
Graph 18: Demand for ethylene dichloride in China from 2005 to 2021 - split by applications
Graph 19: Revenues generated with ethylene dichloride in China from 2005 to 2021 in billion US$ und billion €
Graph 20: Production of ethylene dichloride in China from 2005 to 2021
Graph 21: Demand for vinyl chloride in China from 2005 to 2021 - split by feedstocks
Graph 22: Revenues generated with vinyl chloride in China from 2005 to 2021 in billion US$ and billion €
Graph 23: Production of vinyl chloride in China from 2005 to 2021 - split by feedstocks
Graph 24: Demand for PVC in China from 2005 to 2021 - split by feedstocks
Graph 25: Revenues generated with PVC in China from 2005 to 2021 in billion US$ and billion €
Graph 26: Production of PVC in China from 2005 to 2021 - split by feedstocks
Graph 27: Import and export of PVC in China from 2005 to 2021
Graph 28: Demand for ethylene oxide in China from 2005 to 2021
Graph 29: Demand for ethylene oxide in China from 2005 to 2021 - split by applications
Graph 30: Revenues generated with ethylene oxide in China from 2005 to 2021 in billion US$ und billion €
Graph 31: Production of ethylene oxide in China from 2005 to 2021
Graph 32: Demand for ethylene glycol in China from 2005 to 2021 - split by feedstocks
Graph 33: Revenues generated with ethylene glycol in China from 2005 to 2021 in billion US$ und billion €
Graph 34: Production of ethylene glycol in China from 2005 to 2021 - split by feedstocks
Graph 35: Import and export of ethylene glycol in China from 2005 to 2021
Graph 36: Demand for nonionic surfactants in China from 2005 to 2021
Graph 37: Production of nonionic surfactants in China from 2005 to 2021
Graph 38: Import and export of nonionic surfactants in China from 2005 to 2021
Graph 39: Demand for ethylbenzene in China from 2005 to 2021 - split by applications
Graph 40: Revenues generated with ethylbenzene in China from 2005 to 2021 in billion US$ und billion €
Graph 41: Production of ethylbenzene in China from 2005 to 2021
Graph 42: Demand for styrene in China from 2005 to 2021
Graph 43: Demand for styrene in China from 2005 to 2021 - split by applications
Graph 44: Revenues generated with styrene in China from 2005 to 2021 in billion US$ and billion €
Graph 45: Production of styrene in China from 2005 to 2021
Graph 46: Import and export of styrene in China from 2005 to 2021
Graph 47: Demand for polystyrene in China from 2005 to 2021
Graph 48: Revenues generated with polystyrene in China from 2005 to 2021 in billion US$ und billion €
Graph 49: Production of polystyrene in China from 2005 to 2021
Graph 50: Import and export of polystyrene in China from 2005 to 2021
Graph 51: Demand for EPS in China from 2005 to 2021
Graph 52: Revenues generated with EPS in China from 2005 to 2021 in billion US$ and billion €
Graph 53: Production of EPS in China from 2005 to 2021
Graph 54: Import and export of EPS in China from 2005 to 2021
Graph 55: Demand for SBR in China from 2005 to 2021
Graph 56: Production of SBR in China from 2005 to 2021
Graph 57: Import and export of SBR in China from 2005 to 2021
Graph 58: Demand for ABS/SAN in China from 2005 to 2021
Graph 59: Revenues generated with ABS/SAN in China from 2005 to 2021 in billion US$ and billion €
Graph 60: Production of ABS/SAN in China from 2005 to 2021
Graph 61: Import and export of ABS/SAN in China from 2005 to 2021
Graph 62: Demand for ethylene in other applications in China from 2005 to 2021

List of Tables

Table 1: Demand for ethylene in China from 2005 to 2021 - split by applications
Table 2: Capacities of ethylene manufacturers in China in 2013
Table 3: Changes in ethylene capacities in China - split by producer
Table 4: HDPE capacities in China in 2013 - split by producer
Table 5: Changes in HDPE capacities in China - split by producer
Table 6: LLDPE capacities in China in 2013 - split by producer
Table 7: LDPE capacities in China in 2013 - split by producer
Table 8: PVC capacities in China in 2013 - split by producer
Table 9: Changes in PVC capacities in China - split by producer
Table 10: Demand for ethylene oxide in China from 2005 to 2021 - split by applications
Table 11: Ethylene oxide capacities in China in 2013 - split by producers
Table 12: Changes in ethylene oxide capacities in China - split by producer
Table 13: Ethylene glycol capacities in China in 2013 - split by producer
Table 14: Changes in ethylene glycol capacities in China - split by producer
Table 15: Demand for styrene in China from 2005 to 2021 - split by applications
Table 16: Styrene capacities in China in 2013 - split by producer
Table 17: Polystyrene capacities in China in 2013 - split by producer
Table 18: EPS capacities in China in 2013 - split by producer
Table 19: Changes in EPS capacities in China - split by producer
Table 20: SBR capacities in China in 2013 - split by producer
Table 21: ABS capacities in China in 2013 - split by producer
Table 22: Changes in ABS capacities in China - split by producer