The Global Ethylene Market was estimated at US$ 121.07 Billion and 146.6 million metric tons in 2016, according to a new report published by Coherent Market Insights. Ethylene is a colorless, flammable gas with sweet and musky odor, having molecular formula C2H4. Ethylene is widely used in the manufacturing of various derivative such as polyethylene, ethylene oxide, ethylene dichloride and others.
Ethylene is also used in agriculture industry as a natural plant hormone, which helps in ripening of fruits. Manufacturing industry uses various processes in the manufacture of ethylene, which includes, steam cracking of hydrocarbons followed by compression and distillation. There are various feedstocks which are used in the production of ethylene includes naphtha, ethane, butane, propane, coal, and others (Methanol to olefins (MTO), gasoil).
Ethylene is mainly used in the production of polyethylene, which finds wide applications in packaging industry, automobiles, construction and manufacturing units. These are mainly attributed due to its high tensile strength, resistance to chemicals and heat.
Request Sample PDF for the Report @ https://www.coherentmarketinsights.com/insight/request-sample/371
Key Feedstock Trends and Analysis of the Ethylene market:
- Naphtha feedstock segment dominated the ethylene market in 2016, according to the stats provided by Coherent Market Insights. Naphtha is the largest feedstock used in the Asia-Pacific, and Western Europe regions. Ethane is the dominant feedstock used in North America, and Middle East regions. The production cost of ethylene is comparatively low with ethane as a feedstock compared to naphtha.
- In North America, the boom in exploiting shale gas reserves has led in producing low cost ethane gas, hence lowering the production cost of ethylene to 60% on comparing with naphtha as a feedstock. Furthermore, the boom in exploiting shale gas reserves for the production of ethane in North America has led to a lot of capacity expansions in ethylene plants. The region has witnessed over 2 million MT/Year of ethylene capacity addition during the past four years and over 620,000 MT/ year ethylene production is expected to add by 2017.
- Saudi Arabia being one of the largest producer of oil and gas in Middle East region is able to produce ethylene in just approximately US$ 50 per metric ton with ethane as a feedstock, which in turn is leading to the high capacity addition in the region. The Gulf Cooperation Council (GCC) countries contributed 11% of global petrochemical-capacity growth over the past ten years and are now a leading global producer and supplier to world markets of ethylene and its derivatives. There are many projects which are under construction or at the planning stage in Saudi Arabia, Kuwait, Abu Dhabi, and Oman would be able to add a further 34 million tons of annual capacity over the following years, which in turn will increase the GCC’s share of global ethylene production from 18% to 21% by 2025.
- The regions such as Middle East, and North America are also using propane, butane and MTO as a feedstock to produce ethylene at a low cost on comparing with naphtha. Currently, North America and Middle East are the dominant regions for consuming propane and butane as a feedstock for producing ethylene in much lower cost than naphtha.
- In Asia-Pacific, China is the largest coal consuming country in developing energy has started using coal and MTO as a feedstock to produce ethylene from its coal to olefins (CTO) and methanol to olefins (MTO) plants. This has lowered the cost of producing ethylene at a much higher rate in the country, which in turn has led to lot of capacity expansions of ethylene in China. Furthermore, the ethylene capacity in India for fiscal year 2016-17 is projected at 4.8 MMT which includes Reliance J3 expansion as well as ONGC Petro additions Limited (OPAL) having commissioned its mega petrochemical complex at Dahej. The total ethylene capacity in India is projected to be 7.2 MMT during fiscal year 2017-18.
- Hence, the feedstock cost trends are largely driving consumption growth between geographic regions. The growing consumption of ethane, propane, butane and coal for the low cost of production of ethylene is the major factor for the robust growth in the ethylene market during the forecast period.
To know the latest trends and insights prevalent in this market, click the link below:
About Coherent Market Insights:
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.
Coherent Market Insights
1001 4th Ave,
Seattle, WA 98154
Company Name: Coherent Market Insights
Contact Person: Mr. Shah
Address:1001 4th Ave, #3200
Country: United States