What’s in store for global polyethylene and polypropylene out to 2026?
Wednesday October 12, 2016
Worldwide polyethylene production is seen to grow from 84.7 million mt in 2015 to 121 million mt by 2026. Platts Analytics estimated that around 12 million mt of additional polyethylene supply will be needed between 2024 and 2025.
The expected shortfall would require around six to 10 world-scale ethylene crackers to be built between 2023 and 2026 to plug the gap. That additional supply is most likely to come from low-cost regions such as North America and the Middle East, and strong demand centers like India and China.
Meanwhile, the global polypropylene market is expected to remain tight to long through 2022 with the addition of new on-purpose propylene units and associated polypropylene units. But with the increase in demand, the global polypropylene market is expected to be in a deficit through the rest of our forecast period.
Our analysis shows an average of 2.74 million mt in additional propylene supply will be needed each year from 2023 to 2026 to keep up with annual 3.5% global demand growth throughout the next decade.
Polyethylene and polypropylene – global trade flows
All of the information contained within this graphic is taken from Platts Global Polyolefins Outlook report and data package. For more information visit: http://www.platts.com/GPO. The post What’s in store for global polyethylene and polypropylene out to 2026? appeared first on The Barrel Blog.