Harcros Report: Ethylene margins declining as inventories rise

By , in Aerospace on . Tagged width:

KANSAS CITY, Kan., Sept. 27, 2018 /PRNewswire/ — Ethylene margins have eroded in 2018 as spot pricing has dipped below production costs.  As inventories rise, the outlook is for ethylene to remain long and pricing may not be attractive until well into 2020.  Some producers have idled capacity while others are now trying to do modifications to increase efficiencies.

Companies that are vertically integrated are coping better.  Although margins on ethylene have steadily eroded, the margins on feedstock, ethane, is still very strong due to the demand from the new world class cracker capacity that has been added over the past two years.  By the end of 2018, over 9 million tons of new capacity will have been added, with more construction continuing.  On the downstream end, derivatives such as EG, MEG, PVC and VCM are showing increasing strength, therefore, as stated, those companies that are vertically integrated are faring better, however those companies can benefit from increasing efficiencies.

The drive to increase efficiency and lower production costs provide the opportunity for companies to invest in retrofitting their facilities with innovative technologies. Emisshield’s high emissivity coatings are designed to, among other things, increase the thermal efficiency of fired heaters by increasing the emissivity of refractory and process tubes. With its ability to be applied in the field during scheduled and non-scheduled shut downs, companies see it as a viable option to reach operational goals.

Furthermore, plants that are in idle also see value applying Emisshield to their process due to the affects the technology can bring to increasing production for when ethylene prices increase. Harcros, a strong standing partner of Emisshield Inc, is proud to provide this NASA originated technology to the industry.

To learn more about this coating technology visit www.emisshield.com and to learn more about Harcros, our products, and our commitment to our customers please visit www.harcros.com or contact George Skavron, gskavron@harcros.com.

CONTACT:
Jared Reigle
Harcros Chemicals Inc.
International Market Development
press@harcros.com

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/harcros-report-ethylene-margins-declining-as-inventories-rise-300720193.html

SOURCE Harcros Chemicals Inc.