January 16th News - On January 16th, Daya Bay announced that the construction of the CNOOC-Shell Huizhou Phase III Ethylene Project in the Daya Bay Petrochemical Zone, Huizhou, is in full swing, with a cumulative completion of 42.49% of the overall progress. Upon completion, the ethylene production capacity of CNOOC-Shell will reach 3.8 million tons per year, maintaining its position as the largest single ethylene plant and the largest ethylene production base in China. Chempricehub Analysis of Ethylene: Bull-Bear Score: -1.5 The CNOOC-Shell Huizhou Phase III Ethylene Project has cumulatively completed 42.49% of its overall progress. Upon completion, its annual ethylene production capacity will reach 3.8 million tons, solidifying its status as the largest single plant in China. The anticipated significant increase in supply is expected to exert notable downward pressure on ethylene spot prices, as the market supply growth may outpace demand growth, leading to price pressure. From a futures perspective, recent data on related contracts, such as polyethylene (an ethylene derivative), shows minor fluctuations in some contract prices (e.g., the settlement price of the 2609 contract is 6,842 yuan/ton, with a change of -6). However, the expansion of ethylene production capacity may indirectly reduce the production costs of downstream products, further amplifying the bearish impact. The overall assessment falls within the range of moderate to significant bearish influence.