SOURCE: MarketResearch.com

MarketResearch.com

January 24, 2012 06:08 ET

Market Research Projects Light Olefins Demand in Europe & Middle East to Reach 76 Million Tons by 2020

ROCKVILLE, MD--(Marketwire - Jan 24, 2012) - MarketResearch.com has announced the addition of the new report "Light Olefins Market in Europe and Middle East to 2020 - Middle East to Witness High Growth from Export Oriented Polyolefins While European Demand Recovers," to their collection of Construction market reports. For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=6768927

The light olefins market in Europe and Middle East has seen a rapid increase in demand over the past decade. The demand light olefins by volume increased from 28.7 million tons to 41.8 million tons between 2000 and 2010, with a CAGR of 3.8%. The increase in demand came mainly from Iran and Saudi Arabia, with noticeable growth also occurring in Russia.

The demand for light olefins in Europe and Middle East is expected to increase with a CAGR of 6.2% during the period 2010-2020, to reach around 76.1 million tons by 2020. The majority of demand is again expected to come from Iran and Saudi Arabia, with the result that demand in Europe is expected to see a lower growth rate than that seen in Middle East.

Propylene is currently produced as a byproduct of ethylene in the cracking process. But using different feedstock provides a different mixture of products. In the last few years, the changing nature of feedstock used in cracking plants has changed the dynamic of the industry. The new feedstock used provides higher ethylene content in the product mixture than the traditional feedstock. This has resulted in decreasing propylene supply growth across the globe. At the same time the end-use markets for propylene have shown greater growth than the end-use markets for ethylene, causing greater demand growth for propylene than for ethylene. The combination of increased demand growth and reduced supply growth is widening the demand/supply gap in the propylene market.

All over the globe, the producers are working on technology specifically designed to produce propylene, which may provide comparable or even cheaper propylene than that produced as a byproduct in cracking for ethylene. Unfortunately, to date, there has been no announcement of cheaper or comparably-priced production of propylene using any specifically-designed technology. These technologies may fill the demand/supply gap if and when implemented.

The demand for light olefins in Europe and Middle East increased from 28.7 million tons in 2000 to 41.8 million tons in 2010, with a CAGR of 3.8%. This growth in demand mainly came from Middle Eastern countries Iran and Saudi Arabia. Industrialization in these two countries has been accompanied by a rapid increase in the demand for light olefins, with the result that they held a collective share of 49.5% of the light olefins demand in Europe and Middle East in 2010.

In future, the demand for light olefins is expected to come mainly from Iran and Saudi Arabia. Every European country is expected to lose its demand share to Middle Eastern countries due to comparatively slower demand growth for light olefins. Iran and Saudi Arabia are expected to account for around 66% of demand for light olefins in Europe and Middle East by 2020.

For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=6768927

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