what would happen to the world cost curves for ethylene ... · cost curve scenarios from ihs markit...

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What would happen to the world cost curves for Ethylene and Polyethylene-HDPE if oil prices don’t rise to the IHS Markit forecast? Copyright © 2018 IHS Markit. All Rights Reserved 218456693-GC-0318 The Middle East average cost advantage vs. North America increases from $67 to $106, largely a consequence of cracker feed mix region to region, as directionally the United States is getting lighter as Middle East is getting heavier At the same time, Northeast Asia becomes much more competitive in comparison to both North America and the Middle East This should translate to more competitive Chinese and other North East Asian ethylene derivatives This can be clearly seen for HDPE for integrated economics for those producers with ethylene production The average NAM cost advantage for HDPE delivered to China compared to domestically produced Chinese HDPE is reduced by $162 per ton for the lower oil price scenario The Middle East cost delivered cost advantage is reduced by about the same magnitude World Cost Curve: Ethylene Cost Curve Scenarios from IHS Markit World Cost Curve: Polyethylene - HDPE americas T +1 800 447 2273 E [email protected] europe, middle east and africa T +44 1344 328 300 E [email protected] asia pacific T +604 291 3600 E [email protected] IHS Markit Competitive Cost & Margin Analytics can help you assess the cost and margin positions of operating chemical plants according to geography, capacity, time, technology, feedstock, operating rate and integration level. For more information visit us at www.ihsmarkit.com/ccma

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Page 1: What would happen to the world cost curves for Ethylene ... · Cost Curve Scenarios from IHS Markit World Cost Curve: Polyethylene - HDPE americas T +1 800 447 2273 E ChemicalSalesAmericas@ihsmarkit.com

What would happen to the world cost curves for Ethylene and Polyethylene-HDPE if oil prices don’t rise to the IHS Markit forecast?

Copyright © 2018 IHS Markit. All Rights Reserved218456693-GC-0318

The Middle East average cost advantage vs. North America increases from $67 to $106, largely a consequence of cracker feed mix region to region, as directionally the United States is getting lighter as Middle East is getting heavier

At the same time, Northeast Asia becomes much more competitive in comparison to both North America and the Middle East

This should translate to more competitive Chinese and other North East Asian ethylene derivatives

This can be clearly seen for HDPE for integrated economics for those producers with ethylene production

The average NAM cost advantage for HDPE delivered to China compared to domestically produced Chinese HDPE is reduced by $162 per ton for the lower oil price scenario

The Middle East cost delivered cost advantage is reduced by about the same magnitude

World Cost Curve: Ethylene

Cost Curve Scenarios from IHS Markit

World Cost Curve: Polyethylene - HDPE

americas

T +1 800 447 2273E [email protected]

europe, middle east and africaT +44 1344 328 300E [email protected]

asia pacificT +604 291 3600E [email protected]

IHS Markit Competitive Cost & Margin Analytics can help you assess the cost and margin positions of operating chemical plants according to geography, capacity, time, technology, feedstock, operating rate and integration level.

For more information visit us at www.ihsmarkit.com/ccma