China's MEG producers rationalize their products on compressed margins – ChinaTexnet.com
Home >> Textile News >> China's MEG producers rationalize their products on compressed margins

China's MEG producers rationalize their products on compressed margins

2022-12-06 08:21:19 CCFGroup

In view of the price compression, MEG producers have actively reduced output. However, operating rate of integrated MEG units is still high in 2022. The cracking rate of naphtha steam cracker remains high due to better aromatics margins, so some integrated producers keep their MEG units running to consume ethylene.

 

0FTHV}3C6YQTUD0V[%(`U_B.png

 

Naphtha-integrated MEG producers (oil refiners) want to expand the layout of ethylene downstream given the persistent loss in MEG production. 

 

UQ%Z1I%W_Z4O{0H_A_RO[@D.png

 

Hengli Petrochemical and BASF-YPC will start new EO units; ZPC, Gulei Petrochemical and Satellite Petrochemical will start new styrene and EVA projects. Producers could increase their competitiveness by diverting ethylene into different units.

 

Company New capacity, kt/yr Startup Impact on EG
Satellite SM 600 Dec, 2022 To cut EG output
Gulei EVA 300 End-Dec, 2022 To cut EG rate by 30-40%
ZPC SM 600*2 Mar, 2023; Q3, 2023 To run 2 of its 3 units after ethylene diversion, the rest one depends on margin
BASF-YPC EO expansion to 200 Apr, 2023 To run EG at low rate
Hengli EO 600 May, 2023 To cut EG sales since H2 2023; for captive use only
ZPC EVA+PE 400+400 2024 flexible diversion of ethylene

 

Keywords: