Xin Hua Cai Jing·2025-08-22 00:18Core Insights - Global olefin capacity optimization is accelerating, potentially reshaping the ethylene supply-demand landscape [1] - The exit and optimization of small-scale, high-cost old capacities in Europe, Japan, and South Korea are noticeably speeding up due to increasing downward pressure on the global ethylene industry [1] - The exit of European and East Asian capacities has not yet led to a substantial turning point in industry supply-demand dynamics, primarily due to the pressure from low-cost capacities in the Middle East and the U.S., as well as the impact of large-scale new capacities in China [1] Industry Dynamics - The average capacity of single plants in Japan and South Korea is 540,000 tons and 1,450,000 tons, respectively [1] - The changes in the industry will be more reflected in the reshaping of the global ethylene supply structure, with Middle Eastern and U.S. capacities replacing high-cost regions [1] - China is expected to increase its global market share by leveraging its advantages in downstream manufacturing [1] Future Outlook - As the supply structure optimizes, low-cost coal-based, gas-based, and integrated facilities are likely to benefit [1]