The total market share of China's PE market is 47%
The total market share of China's PE market is 47%
[global plastic network on October 18, 2016 webex 】 the personage inside course of study Vafiadis, according to the Chinese market of PE total accounted for about 47% of global demand, the growth rate of about 6.5% a year, has been greatly broke through the 4.2% standard. If China does not meet the expected growth rate, the process will have more PE capacity. Currently, global production of PE production is 87 per cent, and in 2017-2018, it will fall to 83.5 per cent. North American PE production will also fall to 90 per cent from current levels, but should remain above 85 per cent. China's PE market has a global market share of 47 per cent. Vafiadis says north American polyethylene will continue to be competitive, but domestic prices will narrow the price range as competition spreads. In the short term, BraskemIdesa, IneosSasol and NovaChemicals will add more than 4 billion pounds of capacity by the end of this year. In 2017, dow chemical, exxonmobil and ChevronPhillipsChemical will add 7 billion pounds of capacity. On the PP side, the massive expansion in China will lead to global price pressures and trade transfers, according to JoelMorales, the us director of HIS polyolefin. He explained that the market would still be difficult in the near future. By 2021, global PP demand growth should be 4.6%. Growth in North America is slightly lower, at 2.8 percent, and Chinese PP growth is expected to be 6.3 percent, and polypropylene will remain the fastest growing commodity plastic. In 2016, high prices in North America opened up new doors for low-priced PP markets abroad, so in 2016 Morales called it a year of imports. He said local production would have to be excluded, so production would begin in North America. North America will add more than 500 million pounds of PP by the end of 2017. The best time to start a business in China is over the next 18 months, but polypropylene has a big cost advantage over polyethylene. "Overall, the entire PP market will still benefit from stable pricing because you can't go up 36 cents, down 36 cents, and you can't do business like this," Morales said.
