Since the beginning of this year, the Jiangsu and Zhejiang regions have ushered in the most stringent environmental protection regulations in history, but the capacity utilization rate of ethylene glycol companies has been further improved, and the domestic monthly output of ethylene glycol has reached a record high. Data show that in August 2017, the total domestic ethylene glycol production exceeded 500,000 tons, reaching 528,100 tons, an increase of 46.33% over the same period last year. Among them, the output of coal-based ethylene glycol reached 139,000 tons, reaching a record high, accounting for 26.32% of the total domestic output.
In 2017, the coal-to-ethylene glycol project is “crazy” again!
Entering 2017, news about the signing or planning of coal-to-ethylene glycol projects continues to spread. According to incomplete statistics, there were more than 10 projects from January to August 2017.
According to statistics of projects under construction, my country’s ethylene glycol production capacity will reach 17.59 million tons by 2021.
Public information shows that the ethylene glycol production capacity currently under planning is 22.36 million tons. Based on full production, the scale will reach nearly 40 million tons.
What are the signs behind the crazy mounting?
According to statistics, since the second half of this year, the price of ethylene glycol has continued to rise. It is understood that as of mid-September, the spot price of ethylene glycol has increased by more than 1,000 yuan, and production profits have also improved significantly compared with the previous period. It is understood that with ethylene glycol, Taking the average price of alcohol in August as an example, the profit of ethylene glycol produced by the ethylene method is around 35 US dollars/ton, the profit of ethylene glycol produced by the MTO route is 1,000 yuan/ton, and the profit of coal-based ethylene glycol is even higher than the other two products. .
The high profits of ethylene glycol products have also directly promoted domestic ethylene glycol manufacturers to actively increase the production of ethylene glycol products. It is understood that since the third quarter, the operating rate of various domestic processes has remained at a relatively high level. Although the operating rate declined in a short period of time due to planned maintenance of some enterprises in the second quarter and equipment upgrades of coal-based enterprises due to strict environmental protection inspections, the operating rate remained at around 80% in the remaining months. Methanol to ethylene glycol It continues to be above 100%.
With high profit and tight gap expected, coal-to-ethylene glycol will become the main new force in the future
Under the combination of high profits and huge demand gap, the new production capacity of ethylene glycol will still maintain a steady growth rate in the future. As can be seen from the table above, some new domestic ethylene glycol production capacity will still be put into the market in 2017, and the new production capacity is expected to reach 1.06 million tons. And purely from a quantitative perspective, coal-based ethylene glycol manufacturers will still be the main force in adding new production capacity in the future. In the future, my country’s high reliance on imports of ethylene glycol will gradually change.
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