Study shows ethylene prices on the way to recovery

A new study of the market research institute Ceresana Research shows that ethylene producers are recovering from the sharp drop in the year 2009. "By 2017, worldwide ethylene revenue will reach again the current 2008 peak volume, which is more than $160 billion," explains Mr. Oliver Kutsch, president of Ceresana Research. "Ethylene prices already recovered during 2010, after they had declined at an average rate of 35% in 2009." Ethylene is needed for plastic bottles, textile fibres and water pipes. The most produced petrochemical is mainly used for the production of plastic.

The Asia-Pacific region will continue to dominate the market in future and generate more than a third of worldwide demand. The pioneer will be China that will rise to become the greatest ethylene consumer worldwide, and will therefore drive out the United States to the second place, followed by Saudi Arabia. However, countries of the Middle East exhibit the largest increases in ethylene production and demand. Volumes in the Middle East have doubled over the past eight years, and Ceresana Research expects to see a further doubling by 2015.