Xin Lang Cai Jing·2025-08-22 00:19Core Viewpoint - The global ethylene industry is experiencing intensified downward pressure, leading to accelerated optimization and elimination of small-scale, high-cost production capacities in Europe, Japan, and South Korea [1] Industry Summary - The average production capacity of single units in Japan and South Korea is 540,000 tons and 1,450,000 tons respectively, indicating a trend towards the exit of less efficient capacities [1] - The development of gas-based and coal-based technology routes, along with China's vast and diversified downstream manufacturing advantages, is expected to reshape the global supply-demand landscape for olefins [1] - Low-cost production capacities in the Middle East and the United States are anticipated to penetrate high-cost regions' ethylene supply chains more rapidly [1] - China's integrated large-scale facilities are likely to benefit from robust downstream manufacturing demand, facilitating growth in global market share through end products [1] - The olefins industry in Europe and parts of East Asia faces a dual pressure situation, struggling with both high costs and competitive pressures from low-cost producers [1] - Following a decline in the central price of international crude oil, the Chinese olefins industry is expected to see a balanced development among gas-based, northwest coal-based, and integrated large-scale facilities [1]