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It’s extremely difficult for ethylene producers this year. Author/Source: Sinochem New Network. Date: 2020-06-22. Clicks: 55. Ancensys recently pointed out that an analysis of the profit cycles in ethylene production shows that global ethylene producers are facing severe challenges this year. On the one hand, a large amount of new ethylene production capacity will still come online globally. Excess capacity will become more severe in a situation of weak demand; on the other hand, weak demand will force the postponement or cancellation of some new project plans, and it will also compel rational adjustments to the existing global ethylene production capacity. Even before the outbreak of the pandemic, the globalized industry was already under significant pressure due to excess ethylene production capacity. With the commissioning of new ethylene production capacity, in 2019, several global chemical companies issued profit warnings. From now until 2021, a large amount of new ethylene production capacity will come online, further increasing the pressure on ethylene production capacity. Coupled with the severe impact on the global economy since the second quarter due to the outbreak of COVID-19, it seems increasingly likely that the imbalance between supply and demand in the global ethylene market will worsen. This is likely to lead to the delay or cancellation of new ethylene projects that have not yet made a final investment decision. Furthermore, those older, smaller, and more expensive ethylene production plants are increasingly likely to be forced to shut down.