China Olefins Market E-News

In July 2014, CCM continues to pay attention to coal-to-olefins projects in China. At the end of June 2014, Shaanxi Yanchang & China Coal's coal-to-olefins project was put into operation. Since then, China has seven sets of coal-to-olefins devices in total, including two MTO devices. It is predicted that more coal-to-olefins projects will be put into operation in H2 2014. What will it bring to China's olefins market? CCM will follow to present detailed information. 

The coal-based olefins industry is developing prosperously, however, experts are worried about the current situation in which large water consumption is highlighted. Hu Qianlin, deputy secretary of CPCIF stated that the Chinese government should issue policies for coal chemical industry to regulate and promote its development.

Meanwhile, another process to produce olefins, PDH process also develops very rapidly. Following Zhejiang Satellite, Ningbo Fortune is disclosed to obtain a loan of USD381.97 million (RMB2.35 billion) for the construction of the largest PDH project in China.

Currently, naphtha still dominate the raw material market of olefins in China. For instance, Sinopec Maoming hit a record by an output of 571,100 tonnes of ethylene in H1 2014, up by 15,700 tonnes year on year. How did the enterprise make it? Please find out in this issue.

In addition, the 2013 Pioneers for Energy Efficiency in Key Energy-consuming Products of Petrochemical Industry issued by CPCIF was released. Of this, CNPC Dushanzi and Sinopec Maoming were listed.

Though MTO projects grasp small market shares, CCM also pays attention to its trading pattern. In July, according to CCM's olefins cost analysis model, the production cost of MTO process continued to decrease. It is believed that how the MTO projects work in China is ascribed to the supply & demand relationship of methanol between China and the globe. Also, CCM presents the future methanol trading pattern in the world in this issue.

The RMB/USD exchange rate in this issue is USD1.00=RMB6.1523 on 1 July, 2014, sourced from the People's Bank of China.
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