Indonesia: Ethylene Market 2024

Ethylene Market Size in Indonesia

After three years of decline, the Indonesian ethylene market increased by 2.4% to $X in 2021. In general, consumption, however, recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 when the market value increased by 10% against the previous year. Over the period under review, the market attained the maximum level at $X in 2015; however, from 2016 to 2021, consumption stood at a somewhat lower figure.

Ethylene Production in Indonesia

In value terms, ethylene production expanded to $X in 2021 estimated in export price. Overall, production, however, continues to indicate a slight reduction. The pace of growth appeared the most rapid in 2017 when the production volume increased by 13% against the previous year. Ethylene production peaked at $X in 2015; however, from 2016 to 2021, production stood at a somewhat lower figure.

Ethylene Exports

Exports from Indonesia

In 2021, shipments abroad of ethylene decreased by -1.8% to X tons, falling for the third consecutive year after five years of growth. In general, exports, however, showed a buoyant increase. The pace of growth was the most pronounced in 2016 with an increase of 599% against the previous year. Over the period under review, the exports reached the peak figure at X tons in 2018; however, from 2019 to 2021, the exports stood at a somewhat lower figure.

In value terms, ethylene exports amounted to $X in 2021. Overall, exports, however, enjoyed a remarkable increase. The most prominent rate of growth was recorded in 2016 when exports increased by 402%. Over the period under review, the exports attained the maximum at $X in 2017; however, from 2018 to 2021, the exports remained at a lower figure.

Exports by Country

China (X tons) was the main destination for ethylene exports from Indonesia, accounting for a 45% share of total exports. Moreover, ethylene exports to China exceeded the volume sent to the second major destination, Malaysia (X tons), threefold. India (X tons) ranked third in terms of total exports with a 10% share.

From 2012 to 2021, the average annual growth rate of volume to China stood at +31.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: Malaysia (+17.8% per year) and India (+13.9% per year).

In value terms, China ($X) emerged as the key foreign market for ethylene exports from Indonesia, comprising 47% of total exports. The second position in the ranking was taken by Malaysia ($X), with a 16% share of total exports. It was followed by India, with an 8.9% share.

From 2012 to 2021, the average annual growth rate of value to China stood at +29.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Malaysia (+15.8% per year) and India (+8.6% per year).

Export Prices by Country

The average ethylene export price stood at $X per ton in 2021, rising by 5.4% against the previous year. Overall, the export price, however, continues to indicate a noticeable setback. The growth pace was the most rapid in 2013 when the average export price increased by 10%. Over the period under review, the average export prices hit record highs at $X per ton in 2015; however, from 2016 to 2021, the export prices remained at a lower figure.

Average prices varied somewhat for the major overseas markets. In 2021, amid the top suppliers, the highest price was recorded for prices to China ($X per ton) and Pakistan ($X per ton), while the average price for exports to Singapore ($X per ton) and Thailand ($X per ton) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to South Korea (-0.8%), while the prices for the other major destinations experienced a decline.

Ethylene Imports

Imports into Indonesia

In 2021, overseas purchases of ethylene increased by 4.6% to X tons, rising for the fourth year in a row after two years of decline. The total import volume increased at an average annual rate of +1.6% from 2012 to 2021; the trend pattern remained relatively stable, with somewhat noticeable fluctuations throughout the analyzed period. The pace of growth was the most pronounced in 2020 when imports increased by 12%. Over the period under review, imports hit record highs in 2021 and are expected to retain growth in years to come.

In value terms, ethylene imports surged to $X in 2021. Over the period under review, imports, however, recorded a relatively flat trend pattern. Over the period under review, imports reached the peak figure at $X in 2014; however, from 2015 to 2021, imports stood at a somewhat lower figure.

Imports by Country

Singapore (X tons), Malaysia (X tons) and Italy (X tons) were the main suppliers of ethylene imports to Indonesia, together comprising 56% of total imports.

From 2012 to 2021, the biggest increases were recorded for Singapore (with a CAGR of +22.4%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the largest ethylene suppliers to Indonesia were Singapore ($X), Malaysia ($X) and Italy ($X), together comprising 57% of total imports.

Among the main suppliers, Singapore, with a CAGR of +19.6%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average ethylene import price amounted to $X per ton, jumping by 39% against the previous year. Over the period under review, the import price, however, saw a slight downturn. The import price peaked at $X per ton in 2014; however, from 2015 to 2021, import prices stood at a somewhat lower figure.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Qatar ($X per ton), while the price for Portugal ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Qatar (+1.0%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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