Chinese Ethylene Oxide Market Led By Zhenhai Refining & Chemical Company with A 16.1% Share

The global ethylene oxide market saw capacity levels reach approximately 27.5 million tons in 2011, with the most predominant regions being Asia-Pacific, North America, and the Middle East. Consumption levels hit near on 22.5 million tons, with Asia showing the largest levels.

Ethylene oxide is the organic compound with the formula C2H4O. It is a cyclic ether. This means that it is composed of two alkyl groups attached to an oxygen atom in a cyclic shape (circular). This colourless flammable gas with a faintly sweet odour is the simplest epoxide, a three-membered ring consisting of two carbon and one oxygen atom.

Because of its special molecular structure, ethylene oxide easily participates in the addition reaction, opening its cycle, and thus easily polymerises. Ethylene oxide is isomeric with acetaldehyde.

Ethylene oxide is an organic heterocyclic chemical ranking only second to polyethylene (PE) and polyvinyl chloride (PVC) among ethylene industrial derivatives, with extensive applications in the production of ethylene glycol (EG), surfactant, polycarboxylate water reducer, ethanolamine, etc.

During 2005-2011, the capacity of ethylene oxide and commodity ethylene oxide presented rapid growth tendency in China, and reached 4.043 million tons and 1.653 million tons respectively by the end of 2011.

At present, the domestic EO facilities all co-produce ethylene glycol basically. In 2011, the consumption of Ethylene Oxide in China approximated more than 2.6 million tons, in particular, the EO consumed by ethylene glycol contributed 68% or so, followed by nonionic surfactant, with share approximating 8%.

In 2011, the ranking of the top 10 enterprises by EO capacity in China remained basically the same. Ranked by equivalent EO capacity, Zhenhai Refining & Chemical Company was still No.1 in 2011, accounting for 650,000 tons or 16.1% of the total capacity; the second place went to Shanghai Petrochemical Company Limited, accounting for 13.1% of the total capacity, followed by SINOPEC SABIC TianJin Petrochemical, CNOOC and Shell Petrochemicals Company Limited and Yangzi Petrochemical Company Limited.

(companiesandmarkets.com, Edited by Topco)