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...
- Global oil and petchem revenues hit by challenging market environment
- Tightness shapes expectations for Sept PVC pricing in Asia
- PP uptrend falters in Indonesia amid downstream resistance
- Will European PE market sustain uptrend following higher ethylene?
- COVID-19 resurgence weighs on polymer sentiment in Vietnam
- Stats: Turkey’s H1 polymer imports defy pandemic, hit all-time high
- Stats: China’s total PP, PE imports set a new record in H1 2020
- Lackluster demand outweighs tightness in Asian ABS markets
- Will costs drum up support for a 3rd-month-firming in Europe PET market?
- Import PE markets give softening signals in China, SE Asia