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The hottest multinational consulting company says

2022-08-23

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Multinational consulting company said CTO will become the driving force of plastics in China. Ihscientific, a multinational consulting company, said that 25% of China's local production capacity will switch to coal to olefin technology. Most of the new production capacity will adopt this cheaper and more competitive technology. China's demand for polyethylene is expected to continue to grow faster than the global market, driving the growth of local production demand

from now on to 2020, coal based polyethylene is expected to become an important driving force for the development of China's plastic industry, which will be quite cost competitive against low-cost competitors, imported resins from the Middle East, and plastics based on shale gas produced in North America

the multinational consulting company said that CTO will become the driving force of China's plastics. At the Chinaplas held in Shanghai on April 24, the multinational consulting company ihscientific said that most of China's coal based polyethylene is likely to be supplied to the domestic market

Nickvafiadis, senior director of global olefin and plastic business of ihscientific, said that in, 25% of China's local production capacity will switch to coal based production. Combining the above two factors, the error is characterized by the impact of small load on large olefin technology. Most of the new production capacity will adopt this cheaper and more competitive technology

Platts, a multinational price and information provider, released a report on March 24 that China will add 14million tons of polyethylene capacity by 2021, most of which will be based on coal to olefins. Last year, the global demand for polyethylene was about 82 million tons

Jimfoster, director of petrochemical analysis at Platts, said in a statement that he had heard a lot about how shale gas changed the "rules of the game" of the petrochemical industry. "That's true. But as long as China follows the plan, coal to olefins has the potential to exert greater influence than shale gas."

According to Platts, more than 30 coal to olefin and methanol to olefin projects will be put into operation in China by 2020. The company said that the new amount of coal to ethylene in China is expected to be equal to the new amount of shale gas to ethylene in North America

it has been adjusted before leaving the factory

other analysts questioned whether some of the announced CTO production capacity can finally be put into production, because most CTO plants are in remote mining areas far away from China's plastic processing center, and also involve environmental issues, including the need for a large amount of water for CTO Technology

ihs believes that Chinese CTO materials will not necessarily be as cheap as PE made in North America or the Middle East, but will still have strong cost competitiveness

Vafiadis said that the world is currently developing two low-cost regions, the Middle East and North America. This is the first time that North America has such a status. In the past, it was limited to the Middle East. Now China is adding highly competitive [materials] with coal to olefin technology

last year, CTO technology accounted for less than 0.025% of the global ethylene production capacity of about 133 million tons. However, China's demand for polyethylene is expected to continue to grow faster than the global market, and promote the growth of local production demand through mergers and acquisitions, investment and intelligence. From now on to 2018, China's PE consumption will maintain an annual increase of 7.1%. This kind of phenomenon is neither completely the same as the large deformation above the glass transition temperature (high elastic deformation or plastic deformation) nor the long viscous activity at high temperature, which is higher than the global average growth rate of 4.8%

Vafiadis believes that even if China is rich in coal resources, shale gas PE producers in North America are still expected to become more efficient exporters than Chinese enterprises

he said that North American manufacturers have the ability to ship products to almost all regions of the world in a profitable way

IHS said that North American shale gas will also help local plastic processing enterprises compete more competitively with Asian enterprises in plastic products

Vafiadis said that with the new competitive production capacity, North America will begin to compete with Chinese enterprises in the sales of finished products in the global market. North American producers who produce products suitable for export can adopt efficient packaging, coupled with low transportation costs, they will begin to compete for market share in the world

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