The prospects of the ethylene market in Northeast Asia in the second half of this year are uncertain, because although some crackers in the region are planned to be overhauled, the resulting lack of production will be offset by the production of new equipment and goods from outside the region.
It is reported that in 2018, more than 20 cracker units in Asia are planned to be overhauled, and it is estimated that the lost production capacity will exceed 1.85 million tons. Most of the crackers installed in Northeast Asia during the first half of this year are concentrated in Japan. Ethylene in Japan is mainly exported to the Chinese market. .
However, several companies in Northeast Asia will continue to overhaul the cracker in June of this year and the remainder of the year.
The impact of the shutdown and overhaul activities of the cracker in Northeast Asia on the supply and demand balance in the region during the rest of the year will depend on the production process of new installations in South Korea and whether strong exports from Southeast Asia and Europe in the first half of 2018 will continue.