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Released June 14, 2024 | NEW DELHI
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Researched by Industrial Info Resources (Sugar Land, Texas)--As one of the most versatile and widely used plastics among consumers, polyethylene holds a prominent position in the global plastics market. In recent years, Asia has established itself as a leading player in the polyethylene market, owing to its widespread applications and rising demand across several industries.
Known for its exceptional properties including durability, flexibility and resistance to moisture and chemicals, polyethylene is a polymer synthesized from ethylene monomer. Based on its density and molecular structure, polyethylene is classified into several types, including low-density polyethylene (LDPE), high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE).
Asia's expanding population and rapid urbanization has led to a significant rise in the demand for packaging materials, especially in the food and beverage sector. Additionally, the growing middle class in Asia has further led to increased utilization of polyethylene products such as bags, bottles and household items. Moreover, the booming e-commerce sector in Asia is spurring demand for packaging materials manufactured from polyethylene for shipping and logistics purposes. Furthermore, as government initiatives continue to prioritize infrastructure development, the construction sector will also continue to boost the demand for pipes and fittings produced from polyethylene.
Industrial Info is tracking 188 projects with investments nearing US$61 billion geared at the production of polyethylene resins in Asia. About 58% of the spending is attributed to unit additions, while around 36% are aimed at grassroot projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed project reports.
The majority of the spending in the region is primarily driven by China and Iran, accounting for 65% of the total spending. India, United Arab Emirates, Kazakhstan and Indonesia are some of the other countries with significant investments in the polyethylene market with a cumulative spending of US$11 billion.
As the largest market for plastics, China leads the polyethylene market with investments worth US$27 billion across 72 projects, mainly driven by the expanding sectors like packaging, construction and manufacturing. China National Petroleum Corporation (CNPC) (Beijing, China) is the leading investor in polyethylene with investments of US$5 billion. One of its projects, with an investment of US$591 million, is aimed at producing full density polyethylene (FDPE) and is scheduled for completion in 2026. Subscribers can click here for a detailed project report.
Another prominent investor, China Petroleum and Chemical Corporation (Sinopec) (Beijing) is also making substantial investments with one of its projects aimed at producing 600,000 metric tons per year of LLDPE in Luyoang, China. Subscribers can click here for the project report.
With spending nearing US$13 billion, Iran follows with around 45 projects in the pipeline aimed at polyethylene production. Home to one of the world's largest natural gas reserves, Iran has a readily available and relatively inexpensive source of ethane for polyethylene production. Moreover, the nation is aiming to boost domestic production of polyethylene and build a strong downstream petrochemical industry. Due to international sanctions on Iran, it continues to face bottlenecks accessing certain technologies to produce polyethylene as well as restrictions on trade with specific countries that could hinder future exports.
More than half of the projects in Iran currently in the pipeline have been tagged as having a lower probability of moving forward. Around 42% of the projects have a high probability of moving forward, with the remaining share with medium probability. Persian Gulf Petrochemical Industries Company (Tehran, Iran) is the dominant player in the country, which is investing in several grassroot projects.
Saudi Arabia is in a distant third position with investments worth more than US$4 billion. One of the major projects in the region is led by Saudi Arabian Oil Company (Saudi Aramco) (Dharan, Saudi Arabia) with spending of about US$2 billion. The project is aimed at the construction of two units and installing process (ADL technology) plus supporting equipment and utilities to produce 2,204.6 million pounds per year (1,102.3 million pounds per year for each unit) of polyethylene resins in Jubail, Saudi Arabia. Subscribers can click here for the project report.
Subscribers can click here for all the project reports mentioned in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Known for its exceptional properties including durability, flexibility and resistance to moisture and chemicals, polyethylene is a polymer synthesized from ethylene monomer. Based on its density and molecular structure, polyethylene is classified into several types, including low-density polyethylene (LDPE), high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE).
Asia's expanding population and rapid urbanization has led to a significant rise in the demand for packaging materials, especially in the food and beverage sector. Additionally, the growing middle class in Asia has further led to increased utilization of polyethylene products such as bags, bottles and household items. Moreover, the booming e-commerce sector in Asia is spurring demand for packaging materials manufactured from polyethylene for shipping and logistics purposes. Furthermore, as government initiatives continue to prioritize infrastructure development, the construction sector will also continue to boost the demand for pipes and fittings produced from polyethylene.
Industrial Info is tracking 188 projects with investments nearing US$61 billion geared at the production of polyethylene resins in Asia. About 58% of the spending is attributed to unit additions, while around 36% are aimed at grassroot projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed project reports.
The majority of the spending in the region is primarily driven by China and Iran, accounting for 65% of the total spending. India, United Arab Emirates, Kazakhstan and Indonesia are some of the other countries with significant investments in the polyethylene market with a cumulative spending of US$11 billion.
As the largest market for plastics, China leads the polyethylene market with investments worth US$27 billion across 72 projects, mainly driven by the expanding sectors like packaging, construction and manufacturing. China National Petroleum Corporation (CNPC) (Beijing, China) is the leading investor in polyethylene with investments of US$5 billion. One of its projects, with an investment of US$591 million, is aimed at producing full density polyethylene (FDPE) and is scheduled for completion in 2026. Subscribers can click here for a detailed project report.
Another prominent investor, China Petroleum and Chemical Corporation (Sinopec) (Beijing) is also making substantial investments with one of its projects aimed at producing 600,000 metric tons per year of LLDPE in Luyoang, China. Subscribers can click here for the project report.
With spending nearing US$13 billion, Iran follows with around 45 projects in the pipeline aimed at polyethylene production. Home to one of the world's largest natural gas reserves, Iran has a readily available and relatively inexpensive source of ethane for polyethylene production. Moreover, the nation is aiming to boost domestic production of polyethylene and build a strong downstream petrochemical industry. Due to international sanctions on Iran, it continues to face bottlenecks accessing certain technologies to produce polyethylene as well as restrictions on trade with specific countries that could hinder future exports.
More than half of the projects in Iran currently in the pipeline have been tagged as having a lower probability of moving forward. Around 42% of the projects have a high probability of moving forward, with the remaining share with medium probability. Persian Gulf Petrochemical Industries Company (Tehran, Iran) is the dominant player in the country, which is investing in several grassroot projects.
Saudi Arabia is in a distant third position with investments worth more than US$4 billion. One of the major projects in the region is led by Saudi Arabian Oil Company (Saudi Aramco) (Dharan, Saudi Arabia) with spending of about US$2 billion. The project is aimed at the construction of two units and installing process (ADL technology) plus supporting equipment and utilities to produce 2,204.6 million pounds per year (1,102.3 million pounds per year for each unit) of polyethylene resins in Jubail, Saudi Arabia. Subscribers can click here for the project report.
Subscribers can click here for all the project reports mentioned in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
