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The UK, Norway and Finland Benefit from Rising Sweden’s Ethylene Imports

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The UK, Norway and Finland Benefit from Rising Sweden’s Ethylene Imports

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IndexBox has just published a new report: ‘Sweden – Ethylene – Market Analysis, Forecast, Size, Trends And Insights‘. Here is a summary of the report’s key findings.

Sweden is rapidly ramping up ethylene imports. In the first half of 2021, Sweden purchased 100K tonnes of ethylene. Last year, imports spiked from $125M to $388M, or from 116K tonnes to 525K tonnes in physical terms. The UK, Norway and Finland supply 80% of Sweden’s ethylene imports. In 2020, the UK’s exports rose fourfold, while Norway’s and Finland’s recorded an eightfold increase. The average ethylene import price dropped by -31.8% y-o-y to $739 per tonne.

Ethylene Imports into Sweden

In the first half of 2021, Sweden imported 100K tonnes of ethylene. Over the last year, imports soared from 116K tonnes to 525K tonnes. In value terms, imports surged from $125M in 2019 to $388M (IndexBox estimates) in 2020.

In 2020, the UK (295K tonnes) constituted the largest ethylene supplier to Sweden, with a 56% share of total imports. Moreover, ethylene imports from the UK exceeded the figures recorded by the second-largest supplier, Norway (88K tonnes), threefold. Finland (36K tonnes) ranked third in terms of total ethylene imports with a 6.8% share.

Over the last year, imports from the UK grew fourfold in physical terms. Purchases from Norway and Finland increased by eight times, while France expanded exports to Sweden threefold.

In value terms, the UK ($227M) constituted the largest supplier of ethylene to Sweden, comprising 59% of total imports. The second position in this ranking was occupied by Norway ($62M), with a 16% share of total imports. It was followed by Finland, with a 7.2% share.

In 2020, the average ethylene import price amounted to $739 per tonne, declining by -31.8% against the previous year. Average prices varied noticeably amongst the major supplying countries. In 2020, the countries with the highest prices were the Netherlands ($776 per tonne) and Finland ($774 per tonne), while the price for Portugal ($628 per tonne) and France ($641 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Portugal, while the prices of the other significant suppliers experienced a decline.

Source: IndexBox Platform 

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The Pandemic and the Green Line Regulation to Accelerate Growth of the Ethylene Glycol Market

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IndexBox has just published a new report: ‘World – Ethylene Glycol (Ethanediol) – Market Analysis, Forecast, Size, Trends, and Insights’. Here is a summary of the report’s key findings.

Increasing demand for PET packaging and urgent need for eco-friendly refrigerants to become the main drivers of the ethylene glycol market growth.

Key Trends and Insights

The sharply increased global demand for PET packaging, containers, and nonwovens for personal protective goods is set to stimulate the ethylene glycol market. Monoethylene glycol is a major type of ethylene glycol produced worldwide, constituting a raw material for the production of polyethylene terephthalate (PET) used in synthetic fibers, packaging, plastic tableware, etc.

Amid tightening environmental regulation and the EU’s policy to replace HFC fluids with climate-friendly alternatives, ethylene glycol fluids meet environmental requirements and provide energy savings, which may promote the use of ethylene glycol in cooling systems.

China remains the largest consumer of ethylene glycol, with domestic manufacturing expanding rapidly over the last decade. China’s booming and government-subsidized electric vehicle industry could expand the demand for polyethylene glycols as automotive antifreeze and PET feedstock for automotive parts.

In early 2021, as a result of a winter storm in the United States, near 85% of ethylene glycol production capacity was stopped. The decline in output led to an increase in import prices for ethylene glycols in Asia.

Saudi Arabia to Remain the Key Producer and Exporter of Ethylene Glycol

Saudi Arabia (7.1M tonnes) remains the largest ethylene glycol producing country worldwide, comprising approx. 26% of the total volume. Moreover, ethylene glycol production in Saudi Arabia exceeded the figures recorded by the second-largest producer, the U.S. (2.6M tonnes), threefold. The third position in this ranking was occupied by Canada (1.9M tonnes), with a 6.9% share (IndexBox estimates).

From 2012 to 2019, the average annual growth rate in Saudi Arabia stood at +7.3%. The average annual rates were as follows in other countries: the U.S. (+6.4% per year) and Canada (+2.1% per year).

In 2019, shipments abroad of ethylene glycol (ethanediol) increased by 5.8% to 16M tonnes, rising for the fifth consecutive year after two years of decline. In general, total exports indicated tangible growth from 2012 to 2019: its volume increased at an average annual rate of +3.9% over the last seven years.

In value terms, ethylene glycol exports shrank significantly to $10B (IndexBox estimates) in 2019. Overall, exports continue to indicate a noticeable slump. The pace of growth appeared the most rapid in 2017, with an increase of 33% against the previous year. Over the period under review, global exports attained the peak figure at $13.9B in 2018 and then contracted sharply in the following year.

Saudi Arabia represented the key exporter of ethylene glycol (ethanediol) globally, with the volume of exports finishing at 6.7M tonnes, which was near 41% of total exports in 2019. Canada (1.5M tonnes) ranks second in terms of total exports with a 9.5% share, followed by Taiwan (Chinese) (8.9%), Kuwait (8.3%), the U.S. (6.3%), and Singapore (5.8%). Belgium (681K tonnes) occupied a relatively small share of total exports.

From 2012 to 2019, the average annual growth rates concerning ethylene glycol exports from Saudi Arabia stood at +7.5%. At the same time, the U.S. (+9.2%), Kuwait (+5.1%), Taiwan (Chinese) (+2.3%), and Canada (+2.0%) displayed positive paces of growth. Moreover, the U.S. emerged as the fastest-growing exporter globally, with a CAGR of +9.2% from 2012-2019. By contrast, Singapore (-2.3%) and Belgium (-4.4%) illustrated a downward trend over the same period. Saudi Arabia (+8.8 p.p.) and the U.S. (+1.8 p.p.) significantly strengthened their global export positions, while Singapore and Belgium saw their share reduced by -3.2% and -3.3% from 2012 to 2019, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Saudi Arabia ($4.2B) remains the largest ethylene glycol supplier worldwide, comprising 42% of global exports. The second position in the ranking was occupied by Canada ($908M), with a 9.1% share of global exports. It was followed by Taiwan (Chinese), with an 8.3% share.

Source: IndexBox AI Platform