Kelly Cui, Olefins Senior Consultant, discusses China’s aspiration to switch gears from being the world’s leading importer of olefins to becoming self-sufficient via CTO/MTO.
China has historically seen rapid rises in both ethylene supply and demand growth. Its supply has been dominated by steam crackers, which accounted for 98% of total supply in 2010. Demand growth was robust at 7% between 2010 and 2016, and it’s developing much faster than supply. To meet the increasing demand, China still needs other sources, such as coal- and methanol-based olefins (CTO/MTO). This method uses China’s abundant coal reserves and domestic and imported methanol resources, and it reduces China’s dependency on imports of olefins and derivatives.
Source: PCI Wood Mackenzie
As China’s CTO/MTO aspirations continue, how economically competitive will they be? How will they impact Chinese olefin prices, and how do they compare with other production routes globally? Our China’s coal- and methanol-based olefins study delves into the intricate details and its effects on the global market.