Industry Overview - Ethylene Oxide (EO) is a crucial organic chemical raw material and intermediate, ranking third among ethylene derivatives after polyethylene and polyvinyl chloride [1][2] - In 2010, China's EO production capacity was approximately 1.26 million tons, which surged to 4.79 million tons by 2019, achieving a compound annual growth rate (CAGR) of 16% [5] - From 2020 to 2023, China's EO production capacity maintained a growth rate of over 14%, projected to reach 9.44 million tons by 2024, with a year-on-year increase of 8.51% [5] Production and Supply Chain - The upstream of the EO industry includes raw materials such as ethylene and oxygen, while the midstream involves EO production, primarily through the direct oxidation of ethylene [3] - The downstream applications of EO include a variety of products such as polycarboxylic acid superplasticizers, non-ionic surfactants, and others, serving multiple sectors including real estate, infrastructure, and agriculture [3] Regional Distribution - EO production in China is concentrated in East China, South China, and Northeast China, with these regions accounting for over 85% of total capacity [7] - East China, in particular, has become the most significant production base, contributing over 55% of the total capacity due to its robust chemical industry infrastructure and market demand [7] Trade Dynamics - China's EO exports have shown a rapid growth trend, with export volume reaching 971 tons in 2024, a year-on-year increase of 45.14% [9] - The country has maintained a net export status, with zero imports in 2023-2024, indicating that domestic production fully meets market demand [9] Consumption Market - The consumption structure of EO is evolving, with polycarboxylic acid superplasticizers being the largest market, although its share is declining from 61% in 2020 to 37% in 2024 due to a slowdown in the real estate sector [11] - Non-ionic surfactants are experiencing strong growth, increasing their share from 24% in 2024, driven by demand from the daily chemical and agricultural sectors [11] Competitive Landscape - The market share of private enterprises in the EO industry has increased from 33.79% in 2019 to 48.24%, while state-owned enterprises have seen a decline [13] - This shift is attributed to the competitive advantages of private firms in raw material procurement and flexible resource allocation [13] Future Trends - The EO production capacity is expected to continue expanding, with an anticipated addition of 1 million tons by 2025, leading to a total capacity exceeding 9 million tons [19] - The industry is also moving towards green processes and high-end transformation, with a focus on low-carbon catalysts and bio-based EO production methods [20]