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Industry: Email Alert RSS FeedOlefins menaced by overcapacity despite delays; producers concede that they are hedging their bets on building new crackers.
Chemical Market Reporter, June, 1997 by Hoffman, John
Producers concede that they are hedging their bets on building new crackers. THE OLEFINS INDUSTRY continues to drift toward overcapacity, and producers universally agree that pricing and margins are almost certain to decline by the end of the decade. Yet analysts are no longer confident that all proposed expansions will be built as scheduled.
Producers are striving to maintain market share and do not want to appear weak by backing down from announced projects. But fears of impending oversupply are prompting producers to consider postponing their expansions, and several projects could be delayed to avoid a massive capacity glut. Huntsman Corporation confirms that it is "hedging" its plans to build a 1.5-billion-pound grassroots ethylene cracker....
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