Recent Market Trends of Olefins

What Are Olefins

Alkenes are hydrocarbons that contain C=C bonds (carbon-carbon double bonds). Belong to unsaturated hydrocarbons, divided into alkenes and cycloalkenes. According to the number of double bonds, they are called monoolefins, diolefins, etc. One of the double bonds is a π bond with higher energy, which is unstable and easy to break, so an addition reaction occurs.

The general molecular formula of chain monoolefin is CnH2n, C2-C4 is a gas at room temperature, it is a non-polar molecule, insoluble or slightly soluble in water. The double bond group is a functional group in the olefin molecule, which is reactive and can undergo addition reactions such as hydrogenation, halogenation, hydration, halogenation, hypohalogenation, sulfate esterification, epoxidation, polymerization, etc., and can also be oxidized to generate double bonds. cleavage to generate aldehydes, carboxylic acids, etc.

Production Method of Olefins

Crude Oil Direct Chemical Production Technology to Produce Olefins

Sinopec crude oil direct chemical production technology was developed by the Petroleum Research Institute, mainly through catalytic cracking. After the crude oil is cut into light and heavy fractions, they are respectively subjected to catalytic cracking to produce low-carbon olefins. The double riser reactor of a catalytic cracking unit is used to implement the two risers. The light and heavy fractions are fed into the two risers respectively, and the most suitable ones are given respectively. The operating parameters maximize the production of light olefins.

Recent International Market News

● Asia will Play An Important Role on the Production of Olefins

The Asian ethylene and propylene market is entering a bearish period under the dual pressure of high energy prices and a surge in new capacity, Mike Parker, Asia olefins business director at Essen Huamai Basic Chemical Services, said at the 2022 World Petrochemical Conference. There may be production cuts or even industry consolidation. Coincidentally, at the polyolefin webinar held by ICIS on April 27, participating experts also said that the Asian polyolefin market is facing the dual pressure of capacity expansion and high market inflation. The Asian olefins and polyolefins market will bear the burden this year.

● Olefins’ Price on Europe is Decreasing

"There will be a slight drop [in ethylene] going into January," a consumer of the product said. Several other sources including consumers and traders said the ethylene contract for January could drop by Eur30 month on month, while most players in the propylene market said the contract price could fall Eur20/mt.Both ethylene and propylene contracts had already shown steep drops in December, with ethylene down Eur110 from November to Eur1,025/mt FD NWE and propylene Eur100 lower at Eur960/mt FD NWE.

● China is Constructiong New Production Project for Olefins

Yulin Chemical is carrying out the construction of a demonstration project for the production of new chemical materials by the use of coal in the Qingshui Industrial Park of Yushen Industrial Zone. The first phase of the project will invest about 70 billion yuan to build 1.8 million tons/year of ethylene glycol, 5.6 million tons/year of methanol, and 2 million tons/year of olefins. At the same time, it will produce a large number of olefin downstream fine chemical products. The first and second phases are the construction of 5.6 million tons/year of methanol, 2 million tons/year of olefins and deep processing projects, which are planned to be completed before the end of 2023.

● Mitsui Chemicals announced plans to use bio-based materials provided by Nestlé

In May, Mitsui Chemicals announced plans to use bio-based materials provided by Nestlé. According to ISCC Plus certification, the raw materials used to produce plastics and chemical derivatives will be shipped as certified bio-based products. Mitsui Chemicals is striving to achieve a circular economy through the dual methods of chemical recovery and production of biological materials. Products produced by the company's Osaka Petrochemical Plant include olefins, ammonia, urea, ethylene oxide, ethylene glycol and phenol.

Related Suppliers

• Jiangsu Sailboat Petrochemical Co., Ltd.

It is a wholly-owned subsidiary company of Shenghong Holding Group, located in Xuwei new district Industrial Park, Lianyungang City, Jiangsu province. It chose the Advanced MTO process to produce the highest yields of light olefins at the lowest cost of production, with the lowest catalyst consumption and the lowest operating cost.

• Shandong Look Chemical Co., Ltd.

It is a new chemical enterprise in researching, manufacturing and supplying of chemicals located in beautiful “Spring City”- Jinan. Our company mainly working on the researching new-born APIs, intermediate (especially Carbohydrate derivatives series). Meanwhile, we made huge breakthrough in industries of food, feed additives, cosmetics, dye and industrial chemicals.