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Ethylene Procurement Research - Market Trends and Spend Analysis by SpendEdge
Copyright Business Wire 2018

Global procurement intelligence advisory firm, SpendEdge, has announced the release of their 'Ethylene Market Procurement Research Report.' The insights and data in this report provide a strategic analysis of the supply markets, factors influencing purchasing decisions, procurement best practices, pricing models, supplier landscape, and an analysis of the supplier capability matrix for the chemicals industry. This report breaks down the data and analysis behind the procurement of ethylene and acts as an all-inclusive guide for making smart purchasing decisions.

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"Growing consumption of ethylene-based derivatives by end-use markets such as packaging, textiles, transportation, and construction drives the global demand for ethylene," says SpendEdge procurement analyst Anil Seth. "Also, the cheap availability of feedstocks in the form of NGLs for the manufacture of ethylene is driving additions in production capacities by suppliers in North America and the Middle East," added Anil.

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Procurement analysts at SpendEdge highlight the following top three market trends that are contributing to the growth of the Global Ethylene Market:

-- Ethylene production from coal and methanol

-- R&D of new technologies to produce ethylene

-- The ever-growing demand for plastics driving demand for ethylene

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Ethylene production from coal and methanol:

The traditional method of steam cracking is the commonly used method for manufacturing ethylene. A new technology called CTO is now increasingly gaining prominence in China, it uses coal as the feedstock to produce ethylene. Moreover, CTO technology converts coal to methanol and uses the same to produce ethylene through MTO technology. The use of new technologies such as CTO and MTO to produce ethylene will help in the diversification of the feedstock base used in the manufacture of ethylene, thereby offering protection against feedstock price fluctuations.

R&D of new technologies to produce ethylene:

Industry players and research institutions are patenting new methods for producing ethylene. The traditional method of steam cracking, which is also the most commonly used method, has various disadvantages including the need for high volumes of heat energy. Therefore, development of new technologies will help reduce the heat requirement for ethylene production process, which in turn will reduce the energy requirement for ethylene production, leading to a reduction in cost.

The ever-growing demand for plastics driving demand for ethylene:

The growth of the packaging and construction industries across the globe have increased the demand for plastics such as polyethylene. This can be attributed to the rise in personal incomes and increase in the middle-class consumer population. Additionally, the growth in demand for plastics is motivating suppliers to improve their ethylene production capacity, as a result of which the buyers will have the benefit of better bargaining power over their suppliers.

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About SpendEdge

SpendEdge shares your passion for driving sourcing and procurement excellence. We are a preferred procurement market intelligence partner for Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence that helps sourcing and procurement professionals make informed decisions. These innovative procurement solutions help enterprises transform structural capabilities, improve execution efficiency, and fast-track time to savings.

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