BobPatel, chief executive of Lyondell Basel, has predicted that the global polyethylene (PE) market will remain tight this year and next.
Patel said in the company’s second-quarter earnings conference call: “Last year, our global ethylene and polyethylene capacity utilization rate is close to full load. If we look at the supply and demand changes in 2017-2018, we will find that supply growth exceeds The proportion of demand growth is less than 1%. For high-density polyethylene (HDPE), the demand growth rate in 2018 will exceed the supply growth rate by about 1.5%. HDPE accounts for approximately 70% of the PE production of Leandersale.
Pate expects that global PE supply and demand growth will be close to equilibrium in 2019, while HDPE demand growth will once again exceed supply growth. “If the capacity utilization rate drops by 1% by the end of this year, in my opinion, we are still in a very tight market. There will not be too much capacity to put into production in the next few years,” he added.
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