Global supply of propylene will grow significantly faster than expected
Global supply of propylene will grow significantly faster than expected
The global supply of propylene will grow significantly faster than expected in the next five years, as the new production of propylene projects (PHD) comes on stream, foreign media reported. However, if there is a big difference in the price of propylene relative to ethylene, it may accelerate the growth of propylene demand. Chuck Carr, senior director of global olefins at IHS, says this is because of the competitiveness of polypropylene as a lower-cost plastic resin.
According to IHS chemical data, the proportion of propylene projects in the world is only 3 per cent of the world's total supply of propylene, but in 2013 it rose to 14 per cent and is expected to jump to 29 per cent in 2018. Most of the new production of propylene capacity comes from China. In the United States, the light quality of ethylene has reduced the supply of propylene by nearly 40% in the past six years. However, a large number of propane supplies, together with the high price of crude oil relative to natural gas, have made the propane dehydrogenation device of the United States the main growth engine for the future supply of propylene.
It is predicted that the global production capacity of propylene will increase by 30 million tons in the next five years, while demand growth is expected to be only 22 million tons, which will lead to lower propylene prices. Chuck carr, senior director of global olefins at IHS, said the new production would drive a large number of non-polypropylene derivatives projects. Previous investment in polypropylene investment and non-polypropylene derivatives had led to a strong profit margin. Now, a new wave of non-polypropylene derivative investment has been lifted, most of which is built with the asia-focused production facility of propylene.
In North America, as a result of gasoline to reconcile the demand for octane value added, plus the shale development isobutane significantly increased supply, many refineries are considering level refinery propylene by alkylation process to produce high octane number components to return to the gasoline market, it will be for the past few decades exit refinery propylene alkylation in chemicals market reversal.
