Ethylene is a fundamental chemical raw material used in the production of synthetic fibers, synthetic rubber, and plastics. Over 75% of petrochemical products are derived from ethylene, making it a cornerstone of the chemical industry. Experts estimate that the completion of a one-million-ton ethylene project can stimulate over 100 billion yuan in downstream industrial investments. Its long and complex supply chain spans across various sectors such as textiles, automotive, electronics, construction materials, and more.
Feng Shiliang, deputy secretary-general of the China Petroleum and Chemical Industry Association, emphasizes that ethylene holds a central role in China’s petrochemical sector and serves as a key indicator of a country's industrial development level. China has evolved from being a major importer to becoming a global producer of ethylene.
Since the late 1950s, with the introduction of foreign technology at Lanzhou Chemical Industry Co., Ltd., China began its journey in building an ethylene industry. By the 1970s, the industry started to take shape. However, it was only in the past 15 years that the sector experienced rapid growth. Today, China has established several large-scale petrochemical bases, including Yanshan, Shanghai, Yangtze, Qilu, Maoming, Daqing, and others, significantly reducing its reliance on imports. By 2006, China’s ethylene output reached 9.41 million tons, ranking second globally after the United States.
With China's booming economy, demand for ethylene has surged. In 1997, China produced 3.585 million tons, but by 2005, production capacity had expanded to 7.07 million tons annually. Consumption hit 17.4 million tons, with domestic satisfaction at just 43%. By 2006, output had risen to 9.41 million tons, and consumption grew at an average annual rate of 16.1% over the previous 15 years. According to Bai Yu, China's ethylene demand is expected to continue growing during the "Eleventh Five-Year" period, with production capacity projected to reach 17–18 million tons by 2010, achieving a self-sufficiency rate of around 58%.
As China becomes the "world factory," it is increasingly producing ethylene not just for domestic use, but also for global markets. Reports from SRI Consulting highlight that China's ethylene industry has rapidly advanced to world-class standards. Modern ethylene complexes built in China are now competitive even against traditional producers like Saudi Arabia.
China's approach to developing its ethylene industry has been based on a strategy of "introduction, digestion, absorption, integration, and independent innovation." This has led to significant improvements in equipment scale, cost efficiency, and technological capabilities. Sinopec, a leading player, has upgraded older plants and developed core technologies independently, increasing the localization rate of equipment and promoting domestic manufacturing.
Today, the localization rate of ethylene equipment exceeds 80%, with many components reaching international standards. China has successfully developed large-scale cracking furnaces, polypropylene units, and other critical technologies, some of which are now domestically produced. The one-million-ton pyrolysis gas compressor technology has reached or surpassed global standards.
The growth of the ethylene industry has also boosted the petrochemical equipment manufacturing sector, creating strong domestic players and enhancing China’s ability to compete internationally. Ethylene clusters are forming in regions like the Pearl River Delta, Yangtze River Delta, and Bohai Bay, with major projects under construction in Fujian, Zhenhai, and Tianjin.
Looking ahead, China aims to expand its ethylene production further, focusing on technological advancement, energy efficiency, and the use of alternative feedstocks such as coal. With continued investment and innovation, China is well-positioned to maintain its leadership in the global ethylene market.
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