http://www.fibre2fashion.com/industry-article/paidArticles/4368.asp Ethylene: Global market & price trends
Ethylene is a key ingredient to polyethylene which is mostly used in textiles. Primary derivatives of this upstream petrochemical include polyethylene (PE), polyethylene terephthalate (PET), polyvinyl chloride (PVC), polystyrene (PS), and a range of other products. Imbalance in demand and supply in the petrochemical business is an ongoing challenge for all industry players. When there is an imbalance in demand or supply, it results in product shortages affecting profitability in various places of the end use chain. Variations in economic growth of a country, new plant startups, volatility of the feedstock and energy markets, performance of the existing plants, and a few of the key variables influencing market conditions for the product. They are difficult to predict, but have a significant impact on the performance of the companies. During 2008, ethylene sales reached its peak of more than USD 160 billion. Despite the decline in sales during the following year, prices of ethylene are predicted by industry analysts to reach the same record level during 2017. After a fall in 2009 by an average of 35%, prices recovered steadily during 2010, giving hint for a dynamic development in the global ethylene market. There was an oversupply of ethylene with its surplus capacity reaching 15 million tons. The cash margin for some segments in the market was not as expected. Learn more about Ethylene: Global market & price trends at Fibre2fashion