IHS Chemical Week

IHS WPC: Ethylene profit outlook muted by weaker demand, supply surge

10:49 AM MDT | March 22, 2013

Weaker demand growth coupled with stronger rates of capacity expansion has dampened the profit outlook for ethylene, particularly high-cost producers that use heavier feedstocks, said Mark Eramo, v.p./chemical market insights for IHS Chemical. Eramo was speaking at the IHS Chemical World Petrochemical Conference (WPC), at Houston, Wednesday. Global ethylene consumption reached 129 million m.t. in 2012 and is forecast to grow at 4%/year for the next 5 years, Eramo said. “This represents nearly 6 million m.t./year of demand growth, which would result in total...

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