A study done by Dr. Bruce H. Pickover of Chem Systems Inc. predicts that Asian petrochemical prices will decline about 20% by the year 2000 as a result of lower plant utilization and slowed economic growth.
Prices are expected to rebound after 2000 when worldwide plant operating rates will increase.
Asian petrochemical prices are affected by regional and international factors, including U.S. pricing, domestic production costs, economics from alternative sources, supply/demand balances, and tariffs. Because these factors are dynamic, historical relationships among Asian countries and between Asia and the U.S. will change in the future.
Fig. 1 [90,864 bytes] shows the expected cost of ethylene production in Asia in the year 2000, and Fig. 2 [46,197 bytes] shows projected prices of ethylene glycol in the U.S., China, Taiwan, and India.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
![Fig. 1 [90,864 bytes]](http://images.pennwellnet.com/ogj/images/ogj2/9605jas01.gif){kind=link}
![Fig. 2 [46,197 bytes]](http://images.pennwellnet.com/ogj/images/ogj2/9605jas02.gif){kind=link}