Global ethylene production volume is expected to grow by 30% over last year, but associated product prices are expected to decline owing to excess. South Korean oil refining and petrochemical businesses, notably LG Chem, Lotte Chemical, and GS Caltex, are set to finish a multi-year expansion of their naphtha cracking centres. Commercial manufacturing is scheduled at the centres.

Naphtha cracking facilities generate basic materials for synthetic fibres and synthetic resins, such as ethylene. The materials are ubiquitous and simple to manufacture, and associated facility growth is underway in several nations, including South Korea and China.

This year, South Korea’s annual ethylene output volume is expected to grow from 9,816,000 tonnes to 12.7 million tonnes. This year’s rise in domestic ethylene consumption is anticipated to be 5%, with supply expected to surpass demand by roughly 3.36 million tonnes. According to one expert, oversupply and decreased margins are almost certainly unavoidable.