Process Economics Program Report 205A
Petrochemical Industry Profitability
Published: October 1999
In PEP Report 205 we examined the relationships between producer margins and capacity utilization, and developed cost experience curves for both straggler and pacesetter producers for ethylene, propylene, and polyolefins. These elements were then combined to estimate historical profitability and to provide the framework for projection of margins and prices.
In this report we will extend our profitability analysis to include the PVC production chain, styrene and polystyrene, and acrylonitrile, and make projections of margins and prices to the year 2010. We will also update the original analysis and the projections for ethylene, propylene, and the polyolefin resins.