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China's coal to olefin cost advantage faces challenges

wallpapers News 2020-08-08

Qi Min, director of China's ICIS, said that although 70% of China's oil is produced from naphtha, naphtha to olefin plants have been shut down or converted to coal to olefins in Asia due to the high price of naphtha to olefins.

Chen Ying, senior project manager at TZMI China, added that naphtha based ethylene costs the most.

On the other h, the dem for natural gas based ethylene is growing, the dem is slightly greater than the supply.

"The significant cost advantage of NGV is the main driver of dem growth," she said Qi Min added that the macroeconomic environment was not conducive to PP PE dem.

In the past, dem growth was typically 15-20%, but now it has fallen below 20%.

"It's a huge challenge.

" Since 2002, China's import dem for PP its output consumption have steadily increased.

Nearly half of China's imports of PE a third of PP will come from the Middle East.

As for domestic production, production capacity is growing rapidly becoming more more advanced, investors begin to diversify their investment.

Coal to olefin projects have been put into operation in China, most of which are located in North China Western China.

It used to be Sinopec PetroChina, but now private large coal power companies from abroad Taiwan are also entering the industry.

Golipine suggests that polyolefin supply will increase significantly in the next few years.

In coal to olefin plants, most ethylene propylene products are processed into PE PP.

Therefore, the development of coal to olefin industry will greatly accelerate the increase of polyolefin supply in China.

"In the future, the structure of raw materials will be greatly changed," she added.

In the next few years, 80% of the new PE capacity 64% of the new PP capacity will come from the coal to olefin project.

She said that in recent years, China's polyolefin market has changed from "overall shortage" to "structural oversupply structural shortage.

" She added that for a long time, Chinese polyolefin producers have chosen to produce general grade polyolefins to meet most of the market dem.

But she believes that with overcapacity, Chinese companies are beginning to pay more attention to advanced special products in order to compete with foreign companies.

Yu Ting of ICIS said that since coal to olefins cause pollution, companies should pay more attention to environmental issues.

"We should find a solution.

" China's pollution problems also have an impact on the olefin industry.

Chen said the cost advantage of coal to olefins faces challenges because of concerns about pollution high costs.

She added that the topic of pollution taxes has been heard, which could limit the production of coal to olefins.

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