Ethylene (C2H4) refers to an organic compound that appears as a colorless, flammable gas with a slightly sweet taste and odor in its pure form. It is an essential industrial chemical produced through steam cracking of petroleum hydrocarbon feedstocks, such as natural gas and naphtha. It also occurs naturally as a hormone in plants that regulates plant growth, stimulates fruit ripening, and promotes the shedding of leaves. It is widely used in the manufacturing of polymers, such as polyethylene (PE), polyethylene terephthalate (PET), polyvinyl chloride (PVC), ethylene oxide, alpha-olefins, ethylene dichloride, and styrene. As a result, ethylene finds extensive applications across various industries, including agrochemicals, automotive, packaging, rubber, plastics, detergents, construction, and textiles.
The global ethylene market is primarily driven by the escalating demand for plastics from the packaging sector and the growing usage of PE in the production of low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), and high-density polyethylene (HDPE). Additionally, the surging need for sanitized and safe hygienic packaged goods and food products amid the recent outbreak of coronavirus disease (COVID-19) has augmented the demand for ethylene. Furthermore, the development of bio-ethylene due to the increasing environmental concerns, stringent government regulations, and growing need to reduce the carbon footprint has accelerated the product adoption rate. Other factors, including the widespread adoption of lightweight vehicles, rising construction activities, emerging product applications in the medical and agriculture industries, and technological advancements, are also anticipated to propel the market growth.
This production cost analysis report by Syndicated Analytics is the result of a comprehensive examination of the ethylene manufacturing process. The study covers all the requisite aspects that one needs to know while making a foray into the ethylene industry. It is based on the latest economic data and presents exhaustive insights about the primary process flow, raw material requirements, reactions involved, utility costs, operating costs, capital investments, pricing, margins, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake in the ethylene industry.
The following technical and economic aspects are included in the report:
- Market Trends
- Impact of COVID-19
- Major Regions
- Key Manufacturers
- Price Trends
- Mass Balance and Raw Material Requirements
- Various Types of Unit Operations Involved
- Raw Material Costs
- Utility Costs
- Labor Costs
- Packaging Costs
- Transportation Costs
- Land and Construction Costs
- Machinery Costs
- Profit Margins
- Product Pricing
Key Questions Answered in This Report-
- What are the various unit operations involved in manufacturing ethylene?
- What are the raw material requirements and costs in manufacturing ethylene?
- What are the utility requirements and costs in manufacturing ethylene?
- What are the manpower requirements and costs in manufacturing ethylene?
- What are the packaging requirements and costs in manufacturing ethylene?
- What are the transportation requirements and costs in manufacturing ethylene?
- What are the land requirements and costs in manufacturing ethylene?
- What are the construction requirements and costs in manufacturing ethylene?
- What are the profit margins in ethylene?
- What should be the pricing mechanism of ethylene?
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2 Scope and Methodology
2.1 Objectives of the Study
2.3 Research Methodology
3 Executive Summary
4 Global Ethylene Market
4.1 Market Overview
4.2 Historical and Current Market Performance
4.3 Impact of COVID-19
4.4 Market Forecast
4.5 Market Breakup by Segment
4.6 Market Breakup by Region
4.7 Price Trends
4.7.1 Ethylene Price Trends
4.7.2 Product Margins
5 Ethylene Manufacturing Process
5.1 Product Overview
5.2 Detailed Process Flow
5.3 Various Types of Unit Operations Involved
5.4 Mass Balance and Raw Material Requirements
6 Production Cost Analysis
6.1 Raw Material Cost Analysis
6.1.1 Price Trend of Raw Materials Required
6.1.2 Total Expense on Raw Materials
6.2 Utility Cost Analysis
6.2.1 Electricity Costs
6.2.2 Steam Costs
6.2.3 Process Water Costs
6.2.4 Total Expense on Utilities
6.3 Operating Cost Analysis
6.3.1 Salaries and Wages
6.3.2 Plant Overheads
6.3.3 Tax and Insurance
6.3.4 Packaging Costs
6.3.5 Transportation Costs
6.3.6 Sales and Administration Costs
6.3.7 Total Operating Costs
6.4 Capital Cost Analysis
6.4.1 Land and Site Development Costs
6.4.2 Civil Work Costs
6.4.3 Plant Machinery and Commissioning Costs
126.96.36.199 Plant Machinery Costs
188.8.131.52 Auxiliary Equipment Cost
184.108.40.206 Electrical Works and Piping Costs
220.127.116.11 Other Fixed Costs
6.4.4 Working Capital Requirements for Plant Operation
6.4.5 Total Capital Investment Required
6.5 Total Production Cost
7.1 Raw Material Suppliers
7.2 Pant Machinery Suppliers
List of Figures
Figure 1: Global: Ethylene Market: Major Drivers and Challenges
Figure 2: Global: Ethylene Market: Value Trends (in Million US$), 2016-2021
Figure 3: Global: Ethylene Market Forecast: Value Trends (in Million US$), 2022-2027
Figure 4: Global: Ethylene Market: Breakup by Segment (in %), 2021
Figure 5: Global: Ethylene Market: Breakup by Region (in %), 2021
Figure 6: Ethylene: Price Trends, 2016 & 2021
Figure 7: Ethylene: Margins Across Various Stages of the Supply Chain
Figure 8: Ethylene: Breakup of Costs
Figure 9: Ethylene Price Structure
Figure 10: Ethylene: Manufacturing Process Flow
Figure 11: Ethylene: Manufacturing Process: Conversion Rate of Raw Materials
Figure 12: Ethylene: Raw Material Price Trends, 2016 & 2021
List of Tables
Table 1: Ethylene Manufacturing: Raw Material Requirements
Table 2: Ethylene Manufacturing: Raw Material Costs
Table 3: Ethylene Manufacturing: Electricity Costs
Table 4: Ethylene Manufacturing: Steam Costs
Table 5: Ethylene Manufacturing: Process Water Costs
Table 6: Ethylene Manufacturing: Total Utility Costs
Table 7: Ethylene Manufacturing Plant: Costs Related to Salaries and Wages
Table 8: Ethylene Manufacturing: Packaging Costs
Table 9: Ethylene Manufacturing: Transportation Costs
Table 10: Ethylene Manufacturing: Sales and Administration Costs
Table 11: Ethylene Manufacturing: Total Operating Costs
Table 12: Ethylene Manufacturing: Costs Related to Land and Site Development
Table 13: Ethylene Manufacturing: Costs Related to Civil Works
Table 14: Ethylene Manufacturing: Costs Related to Plant Machinery
Table 15: Ethylene Manufacturing: Costs Related to Auxiliary Equipment
Table 16: Ethylene Manufacturing: Costs Related to Electrical works and Piping
Table 17: Ethylene Manufacturing: Total Costs Related to Plant Machinery and Commissioning
Table 18: Ethylene Manufacturing: Working Capital Requirements
Table 19: Ethylene Manufacturing: Total Capital Investment Required
Table 20: Ethylene Manufacturing: Total Production Cost
Table 21: Ethylene Manufacturing: Raw Material Suppliers
Table 22: Ethylene Manufacturing: Machinery Suppliers