ChemOrbis 6th Asia Petrochemical Conference: China’s PP and PE market may see different trade patterns
Regarding ethylene supply pattern, Wood Mackenzie chemical researcher Ms. Wei Li Chen highlighted that Asian countries may face difficulties competing with feedstock advantaged countries such as North America and the Middle East. China will continue to absorb exports of new and upcoming investments in ethylene and derivatives. In addition, she highlighted that CTO (coal to olefin) plants in China may not be competitive in the current climate of lower crude oil prices.
For the propylene supply pattern, the speaker emphasize that there are large volumes of upcoming on-purpose capacities for propylene and the speaker predicted that the Asian propylene prices could fall below ethylene prices and an overcapacity situation that may arise. Demand, on the other hand, may only be able pick up in the next decade.
“China’s PP and PE market may observe a very different trade balance as capacity may grow faster than demand, causing declines in the volume of imported materials and further leading the country towards self-sufficiency,” the speaker stated.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- PET prices weaken further in Asia and Mediterranean
- Vietnam PP market yet to respond to faltering upturn in China
- Turkey’s PE market stuck between weak fundamentals and up pressure from China
- Firming PP trend falters in China’s local market
- European players question if bottom is near for PE
- Asian ABS players turn cautious after recent rally
- July PVC dealt lower in Europe, what lies ahead for August?
- China’s Jan-May total polymer imports hit a record of nearly two decades
- India’s local PVC market soars to 6-month high after customs hike
- China’s export PET market faces correction after rising 10% from two-year-low