The hottest polyethylene capacity growth turns to

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Polyethylene capacity growth turns to Asia and the Middle East

according to a newly released research report, polyethylene (PE) production capacity in Europe and North America will not increase significantly in the next five years, while China and other countries show great demand. The Middle East has the advantage of raw material cost. From now on to 2015, the Asia Pacific and the Middle East will account for more than 80% of the proposed new PE capacity

the report entitled "to 2015: the future of polyethylene industry" released by global markets direct estimated that in 2008, the Asia Pacific region accounted for 43% of global production capacity and 44% of global demand. The report predicts that 12million tons of polyethylene capacity will be added in the region in, of which 8million tons will come from China and India

HDPE dominates the polyethylene production capacity in the Asia Pacific region, accounting for 48% of the installed capacity and 43% of the proposed new capacity. LLDPE capacity currently ranks second, accounting for 28% of the existing installed capacity. LLDPE accounts for 51% of the logistics distribution centers to be built in the region to serve Southeast Asia and the inland hinterland. By 2015, HDPE will account for 47% of the 42million tons of installed capacity in the region, LLDPE for 34% and LDPE for 19%

polyethylene production capacity in the Middle East will also increase significantly, with an additional capacity of 11.5 million tons by 2015

the report said: "the cost advantage of raw materials and the demand of the region to form a diversified export pattern beyond crude oil and natural gas are the main driving factors for the large-scale expansion of capacity in the Middle East."

Iran and Saudi Arabia are the main polyethylene markets in the Middle East, and also the places with the largest number of capacity expansion

Saudi Arabia will add more than 4 million tons of capacity by 2015. The relevant person in charge said that Iran will add more than 5 million tons of capacity. Qatar will add 2million tons of capacity

in contrast, Europe expects local demand to remain stagnant and there will be a large amount of overcapacity. The new PE production capacity of the major producing countries will be very limited. The major producers defined in the report are Germany, France, Belgium and the Netherlands

the only exception in Europe is Russia, which is expected to add 1million tons of polyethylene capacity by 2015

the report first checked whether the joint of the oil system was tightened and said: "Russia is one of the world's largest exporters of crude oil and natural gas. Moreover, the high crude oil price in the past five years has promoted the rapid growth of Russia's economy, resulting in the rise of domestic polyethylene demand, and sufficient crude oil and natural gas reserves provide favorable conditions for capacity construction."

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