The global ethylene glycol market looks promising

Although concerns about severe oversupply and sluggish earnings have plagued ethylene glycol producers for a long time, in the long run, the market still has enough potential demand to support the growth of the industry. London-based Tecnon OrbiChem Company recently stated that the annual capacity of the global ethylene glycol market will exceed 3.5 million tons this year; the surplus will drop below 3 million tons by 2012, and further reduce to 2 million tons by 2015; By 2017, the global ethylene glycol consumption is expected to exceed the capacity of nearly 1 million tons if calculated at 90% of the operating rate.

According to Tecnon OrbiChem, by 2017, the excess capacity in the global ethylene glycol market may not be worth worrying because some temporary shutdowns will ease the excess capacity in the market, especially in Taiwan, South Korea and other places. Some ethylene glycol producers in the United States and Europe have announced rationalization of capacity. Dow Chemical's facility in Taft, Louisiana, will convert ethylene oxide later this year. It will also permanently shut down an unused glycol unit in the area, while Dow Chemical's in Wilton, UK. A set of glycol devices has been closed in January this year.