Issue 13/2021 - Global Chemicals Quick Facts

Global adhesive and sealant producers face supply chain challenges

The top priority for the world's leading adhesive and sealant producers this year has been to address supply chain issues caused by events such as the coronavirus pandemic, the US winter storm in February and the Suez Canal blockage in March, as well as the sharp rise in raw material prices
.
At the same time, a strong recovery in the construction industry, continued growth in the packaging industry, and global trends such as sustainability are expected to drive continued growth
in the global adhesive and sealant industry over the next five years.
Jan-Dirk Auris, Executive Vice President Adhesive Technologies at Henkel, said: "We are currently experiencing significant pressure on our global supply chain, which is caused by a number of reasons, including the ongoing coronavirus pandemic and the impact of extreme winter weather in North America at the beginning of the year on the US petrochemical production center, as well as logistical problems caused by the Suez Canal blockage
.
”

Gulf petrochemical producers are targeting the African market

Recently, Abdulwahab Ashadun, secretary general of the Gulf Petrochemical and Chemical Association, said that as China, a major export market, is implementing a strategy of self-sufficiency in petrochemicals, the output of petrochemicals in the Gulf region is expected to stabilize at 175 million tons in 2021, while prompting producers in the region to look to the African market
.
The Gulf Petrochemical and Chemical Association estimates that Gulf petrochemical producers are expected to spend $71 billion
on new domestic development projects between 2020 and 2024.
"We see an opportunity in the African market to mitigate the risk of
a decline in current market demand," Asadun said.
The GCC's petrochemical industry is now turning to high-value products such as specialty chemicals
.
”

China will lead the growth of ethylene production capacity in Asia by 2025

According to the "Global Ethylene Industry Outlook to 2025" report released by Global Data, the world's leading data analysis company, global ethylene production capacity will increase significantly by 2025, and global ethylene production capacity is expected to increase from 201.
32 million tons / year in 2020 to 299.
42 million tons / year in 2025, an increase of up to 49%.

Amaresvari Kanapati, oil and gas analyst at Global Data, said: "China's ethylene capacity will add 31.
25 million mt/year by 2025, which will lead the growth of ethylene capacity in
Asia.
Among them, the largest new capacity will come from the planned Shandong Yulong Petrochemical Longkou No.
1 ethylene plant, which will reach 3 million tons / year
in 2025.
"Global Data identifies India as the second largest country for new ethylene capacity, with 11.
85 million mt/year
of new ethylene capacity by 2025.

The Central Asian lubricants market will grow rapidly

According to industry forecasts, the demand for lubricants in Uzbekistan and Central Asia will double by 2040, mainly benefiting from the region's industry and the growing number of vehicles
.
A refiner in Uzbekistan said the country is expected to consume 125,000 mt of finished lubricants in 2021, while the entire region, including Turkmenistan, Kazakhstan, Tajikistan, Kyrgyzstan and Uzbekistan, is expected to consume 300,000 mt of finished lubricants
in 2021.
Aziz Yuldashev, Business Development Manager at Jizzak Petroleum, said: "Industry in Central Asia is developing rapidly, and industrial lubricant consumption is expected to surpass automotive lubricant consumption
from 2023.
Yuldashev added that consumption of finished lubricants in Central Asia could increase by 86 percent to 550,000 tons by 2040
.