World Analysis – Ethylene Oxide & Monoethylene Glycol

Duration: Long-term outlook to 2050

Ethylene oxide (EO) is a large-volume chemical primarily produced by the catalytic oxidation of ethylene. Ethylene oxide is a chemical intermediate that cannot be used as such and is further reacted to produce a wide spectrum of products. Monoethylene glycol (MEG) is the single-largest outlet for EO. MEG is widely used for the further production of polyester resins and fibers, and its demand has grown at a sustained rate over the last decade, prompting the need for more EO globally. Other dominant EO end uses include higher-value derivatives such as ethoxylates, ethanolamines, glycol ethers, and polyether polyols. Overall, demand for EO is broadly tied to the general economy and has been increasingly linked to emerging countries, where the improvement in living standards is driving an increasing usage of a wide range of polymers and chemicals that are consumed to produce packaging, films, textile fibers, soaps and detergents, and others.

MEG has traditionally been produced from EO, but new technologies have arisen over the last 10 years (coal-to-MEG, bio-based routes). Nearly all conventional MEG producers also operate an EO facility for upstream integration. The most competitive ethylene oxide/glycol producers are also back-integrated into ethylene production. Over the last decade, new MEG capacities have started up in cost-advantaged regions (Middle East, North America) or where demand has been rapidly increasing (Northeast Asia). In the Middle East and North America, the abundance of competitively priced ethane had provided a significant cost advantage for regional ethylene and ethylene derivative manufacturers, creating the foundation for the most cost-competitive MEG production in the world. In Northeast Asia—particularly in mainland China—the development of the textile industry, as well as the growing dominance of polyester fibers within the textile fibers mix, has driven the construction of large-scale MEG plants.

Duration: Long-term outlook to 2050

The World Analysis – Ethylene Oxide & Monoethylene Glycol provides comprehensive analysis and key insights about critical market developments as they shape the future outlook of the global ethylene oxide (EO) and monoethylene glycol (MEG) markets.

The following reports, data files, analytical tools and visualization modules are available online and can be downloaded from our website:

• Direct Access to the Subject Matter Experts
• In-depth exploration of present market strategic insights, recognition of critical challenges, and presentation of our experts’ forecasts and analysis
• Explanatory Notes detailing data sources, methodologies, unit and conversion factors, and World Analysis deliverables.
• Energy and Economy assumptions
• Price, cost, and margin base assumptions forecast and sensitivities analysis, including price assessment methodology and price definitions across all regions.
• Excel data files with standard supply/demand graphics and price forecasts extended to 2050, trade grids with country and regional trade flows Data appendix (Excel) with supply/demand, capacity and trade tables.
• An online dashboard visualization of capacity, supply/demand, trade grids, and price, cost and margin forecasts
• Supply/demand and capacity database access via data browser
• Data Appendix (Excel) with supply/demand and capacity tables
• Capacity by company/shareholder, capacity integration, top producer/consumer and surplus/deficit capacity ranking, and ownership/subsidiary information

In addition to EO and MEG, capacity and textual analysis is provided for the following products:

• Ethanolamines
• Glycol ethers (E-series)

This World Analysis contains detailed information on capacities, production, demand, and trade for all significant producing and consuming countries and regions. Although data gathering is essential for understanding history and potential future trends, we believe that the interpretation and analysis of the data is the most valuable information to our clients.

Duration: Long-term outlook to 2050