The hottest overcapacity intensifies the fall of e

2022-08-08
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Overcapacity intensifies the collapse of ethylene oxide Market

since the end of 2014, with the production of several new units, domestic ethylene oxide overcapacity has intensified. The star profit-making products that used to be high are now diving from the high platform, and the price has fallen sharply, from 10800 yuan in early November (East China market, ton price, the same below) to 7000 yuan at the end of January. The price has fallen by more than 35% in three months. Domestic production enterprises have reduced production, and some enterprises sigh that the good days of making a lot of money in ethylene oxide are gone

overcapacity intensifies the fall of star products

since 2014, the petrochemical market has been in a continuous downturn, and few products can make profits. Although profits have declined, the fracture of the sample is always broken on both sides, ethylene oxide is still the hope of corporate profits. Driven by benefits, domestic enterprises have accelerated the pace of capacity expansion and production increase of ethylene oxide. In 2014, the domestic ethylene oxide production capacity increased by about 1.51 million tons, and by the end of 2014, the total production capacity had reached 3.95 million tons

on the one hand, the new device accelerates the pace of commissioning. Since November 2014, the original fragile balance of the domestic ethylene oxide market has been broken. First, Jilin Zhongxin has put into operation a new 120000 T/a ethylene oxide plant. Then, Nanjing Dena 130000 T/A, Shandong Lianhong 120000 T/A, Yangzhou oak 200000 t/A and other new units were put into operation. In addition, Shandong Yuhuang's 60000 T/a new capacity is about to start production, and the unit has been ready for operation in September 2014; The second phase of 200000 tons of ethylene oxide/year under construction by Taixing Jinyan chemical technology company is also stepping up the commissioning

on the other hand, stimulated by the strong profitability of ethylene oxide, the original production enterprises continue to improve the production capacity and output of ethylene oxide by optimizing and adjusting the product structure, introducing new technologies and implementing capacity expansion and transformation. In 2014, Zhenhai Refining and Chemical Co., Ltd. increased its production capacity by 70000 tons/year, Yangzi Petrochemical Co., Ltd. increased its production capacity by 60000 tons/year, and Shanghai Petrochemical Co., Ltd. increased its production capacity by 50000 tons/year after overhaul and transformation; In addition to the 50000 T/a capacity of Ningbo Heyuan, 130000 T/a capacity of Dena and 200000 t/a capacity of oak, the new capacity in East China reached 560000 T/A in 2014, and the overcapacity in East China intensified. The same is true in North China, where the original total annual capacity was 200000 tons. After the two units in Shandong are put into operation, the capacity in North China will increase to 380000 tons, an increase of 90%, completely changing the supply pattern in North China. In the past, a large amount of ethylene oxide flowed into North China from East China. Since the end of last year, not only the original ethylene oxide flowed back to East China, but also because of the limited market capacity in North China, even the ethylene oxide in North China began to move southward on a large scale to seize the market in East China

due to overcapacity, market supply exceeds demand. In order to seize the market, new enterprises launched preferential marketing measures to lower market prices; Coupled with the continuous decline in the price of crude oil, the raw material ethylene also fell, and it is not difficult to understand the sharp decline in the price of ethylene oxide

the demand is not strong, and it is difficult for enterprises to make profits during the winter.

while the production capacity is expanding vigorously, the downstream demand is growing slowly, and many enterprises have to reduce costs, reduce production, adjust structure, and find a way out

it is understood that in addition to 70% for the production of ethylene glycol, about 30% of ethylene oxide in China has entered the downstream deep processing field, mainly for the production of non-ionic surfactants, polyether/polyethylene glycol, ethanolamine, choline and pharmaceutical intermediates. Among them, the consumption of non-ionic surfactants accounts for about half of the consumption of ethylene oxide deep processing

however, compared with developed countries, China's downstream market development is very limited. The downstream products of ethylene oxide in Japan and other developed countries have reached more than 5000, while China has only more than 300. In particular, the development and application of ethylene oxide in spices, dyes, coatings and special chemical fiber oiling agents are still in the growth stage. Although the market potential of new products and materials derived from ethylene oxide fine chemicals in China is huge, the domestic industry is struggling because the high-precision and cutting-edge technology in the downstream deep processing industry has been controlled by foreign petrochemical giants for a long time

although the industry has excess capacity, Liaoning oak company, which has entered the ethylene oxide Market on a large scale, is as stable as Mount Tai and develops steadily. Because the company is also one of the largest manufacturers of ethylene oxide derivatives in China. Its main business is polyether monomer for concrete water reducer and crystalline silicon cutting fluid for solar photovoltaic cells, which has become the first industrialized preparation of high-quality polylactic acid polyols in the world. Zhujianmin, chairman and President of Liaoning oak, said that the company strives to lead and meet new market demands with innovative products. For example, the market share of crystalline silicon cutting fluid downstream of ethylene oxide of the company is 70%, and the market share of concrete water reducer is 40%

some traditional production enterprises rely on the co production advantage of ethylene oxide/ethylene glycol to increase the production of ethylene glycol with strong profitability and reduce the output of ethylene oxide by optimizing and adjusting the product structure. Since December 2014, Yangzi Petrochemical has significantly reduced the output of ethylene oxide. Compared with the peak, the output of ethylene oxide of the company has decreased by about 300 tons/day, while the output of ethylene glycol has increased by about 300 tons/day. At the same time, Yangzi Petrochemical also continues to reduce the energy and material consumption of the unit to reduce production costs. Through the continuous optimization of the ethylene oxide refining tower system, the steam consumption of the ethylene oxide refining system of Yangzi Petrochemical is reduced by 8 tons/hour; Through the construction of membrane recovery unit, the company recovers about 300 cubic meters of tail gas rich in ethylene per hour. Through the implementation of whole process optimization and technical research, Yangzi Petrochemical's material consumption per ton of equivalent ethylene oxide (EOE) decreased significantly. At the end of 2014, the material consumption fell by 48 kg year-on-year, hitting the best level in history

although enterprises have taken a variety of measures, due to overcapacity, domestic ethylene oxide competition has intensified, and the gross profit per unit product has fallen sharply. At present, enterprises in the industry are basically in a state of low profit operation, and the cold winter of ethylene oxide has come. Think of the following six technical indicators of the intelligent tensile testing machine: to survive the winter safely, industry experts believe that, first of all, the industry should strengthen self-discipline and cooperation, and temporarily "freeze" new production capacity; Secondly, we should reduce production costs and improve product quality; The most important thing is to speed up the research and development of new downstream products, expand the industrial chain, cultivate and guide new demand, which is the fundamental way to digest excess capacity

after two years of construction, the ethylene oxide (EO)/ethylene glycol (eg) project in Nanshan area of Fujian Quangang Petrochemical Industrial Zone has entered the production preparation stage, and it is planned to be officially put into operation in early March this year. The project is one of the debottleneck series projects of Fujian United Petrochemical Company, with a total investment of 1.6 billion yuan. It is planned to produce 180000 tons of ethylene oxide and 400000 tons of ethylene glycol per year. After being put into operation, it is estimated that the annual new output value will be about 4.3 billion yuan

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