Global and China Ethylene Oxide (EO) Industry Report, 2017-2021
Ethylene oxide (EO) is one of the major derivatives of the ethylene industry. Featured with special reactivity, it can generate a series of fine chemical products for a wide range of applications.
In 2016, the global EO capacity was 34.5 million tons / a, with the CAGR of 4.3% in 2011-2016. It is estimated to grow at the annual average growth rate of around 2.0% in 2017-2021, lower than that in previous years because of overcapacity and the slowdown of downstream demand growth.
China is a leading EO supplier in the world, with the EO capacity of 7.43 million tons / a in 2016 (21.5% of the world's total) and the CAGR of 15.0% in 2011-2016, making it become the main driving force for the global EO capacity growth. Due to overcapacity and falling prices, the capacity growth has slowed down in the past two years significantly; the capacity is expected to hit 8 million tons / a in 2017 and 9.5 million tons / a in 2021.
In recent years, the development of China’s EO industry characterizes the following:
1, Commercial EO accounts for a higher proportion
In 2016, China's commercial EO (not used for glycol) capacity accounted for 56.9% of the total EO capacity, up 20.2 percentage points from 2010, mainly because:
1) China mainly exploited EO for the production of glycol in early time, while it has altered or built commercial EO-based capacity in recent years;
2) The demand of polyether-based superplasticizer for EO grew rapidly.
2, The market monopoly is gradually broken
Before 2010, more than 70% of China’s EO capacity concentrated in Sinopec and PetroChina. In recent years, the market share of these two tycoons has been gradually squeezed by private enterprises, foreign-funded enterprises and military enterprises. In 2016, the capacity contribution of Sinopec and PetroChina fell to about 50%.
3, The price stops dropping to stabilize
The overcapacity dragged down China's EO price after 2011, but the slowdown in capacity expansion has eased the price decline rate in the past two years, even with a slight rebound in 2016. In 2017, the EO price will rise at first and then fall under the impact of the fluctuating ethylene price, while the average price is expected to be the same with 2016.
4, The demand for fine chemical-use EO continues to grow
In 2016, China's demand for fine chemical-use commercial EO occupied about 40%, higher than the global average. Wherein, the market demand from polyether-based superplasticizer jumped the fastest, with the CAGR of up to 32.9% in 2011-2016, mainly thanks to the rapid development of China's rail transit engineering and nuclear power engineering.
The report covers the following:
Definition, production technology, industrial chain, etc. of the EO industry;
Market size, market structure, competitive landscape, etc. of the global EO industry;
China’s EO market size, market structure, import & export, competitive pattern, market price, etc.;
Supply & demand, import & export, price and the like of the EO upstream industry (ethylene and ethanol);
Supply & demand, import & export, competitive pattern, price and the like of the EO downstream deep processing industry (glycol, nonionic surfactants, ethanolamine, polycarboxylate superplasticizer, taurine, etc.);
Operation, EO business, etc. of 3 foreign and 8 Chinese EO-related companies;
Operation, EO derivative business, etc. of 7 Chinese EO deep-processing enterprises.
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