China Polyolefins Market insight - Amazon S3 · 2018-10-22 · China Polyolefins Market insight...
6
CHINA POLYOLEFINS MARKET INSIGHT MARKET ANALYSIS ON CHINESE POLYPROPYLENE AND POLYETHYLENE MARKETS By Dora Xue & Angie Li
Transcript of China Polyolefins Market insight - Amazon S3 · 2018-10-22 · China Polyolefins Market insight...
China Polyolefins Market insight
Market analysis on Chinese PolyProPylene and
Polyethylene Markets
By dora Xue amp angie li
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
By Dora Xue JuNe 2018
ChiNa PolyolefiNsMarket analysis on Chinese PolyProPylene and Polyethylene Markets
TighT suPPly To suPPorT ChiNa PP markeT DesPiTe weak DemaND
Tight supply could buoy Chinarsquos polypropylene (PP) prices in the near term despite weak downstream demand
The market is expecting heavy production losses following recent unexpected outages at five domestic facilities from May and scheduled turnarounds at other plants
In the week ending 1 June domestic prices for PP flat yarn in east China were assessed at Chinese yuan (CNY) 9075tonne after a steady increase from early April according to ICIS data
Chinarsquos import prices for the same material stood at $1245tonne CFR (cost and freight) China largely tracking movement in the domestic market over the past two months according to ICIS data
The strong PP prices have also started to deter buyers from purchasing more spot cargoes
ldquoPP prices are too high We donrsquot want to store too much in our warehouserdquo a buyer said
Downstream demand typically is in a lull in June and July but any downward pressure on prices will be negated by a further tightening of supply as major plants will be taken off line for maintenance
ldquoWhen the maintenance season finishes in late June [PP] prices may start to go downrdquo a trader said
iMPort origins of Polyethylene
region CompanyCapacity lsquo000 tonnesyear
shut-down restart
east China Fund Energy (Changzhou)
300 1-Jul-17 unknown
northeast China
Jinxi Petrochemical
146 27-Dec-17
31-Jul-18
southwest China
Sichuan Petrochemical
450 9-Apr 24-Jun-18
north China Datang Duolun
230 15-Apr unknown
north China Datang Duolun
230 15-Apr unknown
east China Sinopec Zhenhai
Refinery and Chemical
350 27-Apr 8-Jun-18
east China Fund Energy (Ningbo)
300 5-May Jul-18
east China Sinopec Zhenhai
Refinery and Chemical
200 26-May 7-Jun-18
Middle China
Sinopec Zhongyuan
Ethylene
110 20-May Jul-18
northwest China
Pucheng Clean Energy
440 6-May 13-May-18
northwest China
Pucheng Clean Energy
440 22-May 28-May-18
northwest China
Pucheng Clean Energy
440 3-Jun unknown
south China
Guangzhou Petrochemical
200 3-May 7-May-18
north China PetroChina Daqing Refinery
300 16-May 22-May-18
north China Daqing Refinery
300 28-May unknown
north China Zhongtian Hechuang
350 28-May 6-Jun-18
north China Hebei Haiwei 300 29-May 6-Jun-18
northwest China
Shaanxi Yanchang Coal Yulin
300 30-May 29-Jun-18
northwest China
Shaanxi Yanchang Coal Yulin
300 30-May 29-Jun-18
northeast China
North Huajin Chemical
50 10-Jun 10-Jul-18
northeast China
North Huajin Chemical
330 10-Jun 10-Jul-18
northwest China
Ningxia Baofeng Energy
330 7-Jun unknown
CHINA DOMESTIC PRICES VS IMPORT PRICES
7000
7500
8000
8500
9000
9500
10000
10500
CNYtonne USDtonne
PP Yarn Ex-Warehouse China E Assessment Chinese Material Spot 2-4 Weeks Full Market Range (Mid)CNYtonne
PP Flat Yarn (Raffia) CFR China Assessment Import Spot 0-8 Weeks Full Market Range (Mid)USDtonne
950
1000
1050
1100
1150
1200
1250
1300
Apr 2018Jan 2018Oct 2017Jul 2017Apr 2017
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
Demand was considered weakest at Qingdao in the eastern Shandong province due to government-mandated production cuts and logistics restrictions ahead of the Shanghai Cooperation Organisation (SCO) summit on 9-10 June
As of 1 June the combined polyolefin inventories of Chinese petrochemical majors Sinopec and PetroChina had declined to normal levels of 700000 tonnes from a high of 1m tonnes in early March market sources said
Import supply to China may not improve in the short term
as suppliers still deem other markets to be more lucrative including southeast Asia and Europe where prices are higher and the US where supply is tight
Prices of PP flat yarn in southeast Asia at $1305tonne CFR were higher by $60tonne compared with Chinarsquos import prices according to ICIS data
Chinarsquos actual PP import volumes in February and March were lower on a year-on-year basis based on official data while April imports also registered a decline according to market sources
Do you have The righT Tools To NavigaTe ChiNarsquos volaTile PolyProPyleNe markeTs
sPoT aND oPTimise oPPorTuNiTies iN The ChiNese PolyProPyleNe markeT
get the latest prices and commentary on price drivers with access to all of the following
n Importexport spotcontract and domestic pricesn Inventory levels and domestic price marginsn Plant and production news ndash shutdowns maintenance and turnaroundsn Commentary on supplydemand trends trading activity and updownstream markets as well as changes in
government policy
iCis now provides diagnostic and prescriptive solutions that offer a 360-degree view for China styrene complementing each pricing report subscription with these powerful tools
n live supply disruption tracker ndash Real-time view of domestic supply plant outages and start-ups for the next 12 months plus the impact of these changes
n Price drivers analytics ndash Key performance indicators such as importexport parity feedstock and downstream spreads substitution trends and arbitragenetback data
n a quarterly supply and demand outlook
request a free sample report
request a free demo
PP MONTHLY OUTPUT (IN THOUSAND TONNES)
1400
1450
1500
1550
1600
1650
1700
1750
1800
1850
MayAprMarFebJan
CHINA PP IMPORT VOLUMES (IN THOUSAND TONNES)
0
100
200
300
400
500
600
-60
-40
-20
0
20
40
60
80
AprMarFebJan2018 2017 YOY MON
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
ChiNa Pe imPorTs To sTay sTroNg amiD DomesTiC PlaNT TurNarouNDs
By aNgie li JuNe 2018
Chinarsquos polyethylene (PE) imports are expected to remain strong for the rest of the year after posting record volumes in January to April 2018 amid turnarounds at domestic facilities
Buyers in China have been accumulating imported PE cargoes as these were priced lower compared to futures prices since the start of the year
More cargoes will be available to China as new capacities in the US are expected to boost production
For May the countryrsquos PE imports are projected to reach 12m tonnes higher than the monthly average in the first four months of 2018
In January to April 2018 its PE imports volumes totalled 447m tonnes up by 12 from the previous corresponding period according to industry sources
The import volumes were making up for the production losses in the domestic market due to
scheduled turnarounds
On 1 June low density PE (LDPE) imports were assessed at $1155-1180tonne linear low density PE (LLDPE)
iMPort origins of Polyethylene
Country2018
Jan-Marshare
()2017
Jan-Marshare
() yoy
saudi arabia 73 21 525 17 39
iran 466 14 52 17 -10
United arab emirates
419 12 325 11 29
south korea 251 7 237 8 6
singapore 239 7 173 6 38
thailand 197 6 226 7 -13
america 185 5 205 7 -10
Qatar 153 4 128 4 19
india 127 4 56 2 127
kuwait 81 2 8 3 1
others 559 16 576 19 -3
total 3407 100 3051 100 1170
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
stood at $1150-1170tonne while high density PE (HDPE) film products were at $1340-1400tonne according to ICIS data
The prices have increased 15-62 from the end of March but the gains came in lower than market playersrsquo expectations considering the heavy production loss due to turnarounds from April
An estimated 500000 tonnes are expected to be shaved in the second quarter due to scheduled maintenance at domestic facilities according ICIS data
ldquoWe thought the hefty plant turnarounds in the second quarter should lead to a surge in PE prices but the LDPE and LLDPE prices were less than satisfactory
although HDPE prices [were] highrdquo said an east China-based trader referring to both the import and domestic PE prices
Strong imports amid hedging activities bloated the total supply in China in January to April to 998m tonnes up by 8 from the previous corresponding period with supply of LDPE and LLDPE up by 14 and 8 respectively market sources said
Imports of HDPE inched up by 2 over the same period given the gradersquos higher prices compared with LLDPE and LDPE
Increased availability due to recent capacity expansions and start-ups in Asia and the Middle East also fuels Chinarsquos appetite for import cargoes
In the first quarter of 2018 additional cargoes from Saudi Arabia were mostly from Sadara Chemical which started up its 750000 tonneyear swing plant and 350000 tonneyear LDPE plant in Al Jubail during late 2016 and early 2017 respectively
Cargoes of Iran origin augmented the total volume from the United Arab Emirates (UAE) as market players try to get around the financial sanctions on Tehran Kordestan Petrochemicalrsquos 300000 tonneyear LDPE plant in Iran
Polyethylene tUrnaroUnds
Producer
Pe Capacity lsquo000 tonnes
year scheduled tasichuan Petrochemical 600 8 April - 28 June
shanghai Petrochemical 90 From May to July
Jilin Petrochemical 610 10 May - 15 June
Zhenhai refining and Petrochemical 500 27 April - 8 June
daqing Petrochemical 1155 Estimated July to
September
Baotou Charcoal chemical 300 Estimated September
ningxia Baofeng energy 300 30 days from 7 June
to 7 July
shanghai secco 800 Estimated October to November
fujian refining and Petrochemical 1000
Estimated 40-50 days from November to Decemeber
shaanxi yanchang China Coal Chemical 600 30 May - 26 June
huajin Chmeical 330 10 June - 10 July
ningxia shenhua Chemical 450 8-23 April
huajin Chmeical 330 10 June - 10 July
CHINA POLYETHYLENE IMPORT PRICES IN H1 2018
1100
1150
1200
1250
1300
1350
1400
Jun 2018May 2018Apr 2018Mar 2018Feb 2018
USDtonne
Source xxxxxxxxxx Note xxxxxxxxxx
PE HDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
PE LDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
PE LLDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
8000
9000
10000
11000
12000
MayMarJan2018
NovSepJulyMayMarJan2017
LLDPE futureImport LDPE E China low end
POLYETHYLENE SPOT PRICE AND LLDPE FUTUREVALUES IN H1 2018CNYtonne
Import LLDPE E China low end
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
Do you have The righT Tools To NavigaTe ChiNarsquos volaTile PolyProPyleNe markeTs
sPoT aND oPTimise oPPorTuNiTies iN The ChiNese PolyProPyleNe markeT
get the latest prices and commentary on price drivers with access to all of the following
n Importexport spotcontract and domestic pricesn Inventory levels and domestic price marginsn Plant and production news ndash shutdowns maintenance and turnaroundsn Commentary on supplydemand trends trading activity and updownstream markets as well as changes in
government policy
iCis now provides diagnostic and prescriptive solutions that offer a 360-degree view for China styrene complementing each pricing report subscription with these powerful tools
n live supply disruption tracker ndash Real-time view of domestic supply plant outages and start-ups for the next 12 months plus the impact of these changes
n Price drivers analytics ndash Key performance indicators such as importexport parity feedstock and downstream spreads substitution trends and arbitragenetback data
n a quarterly supply and demand outlook
request a free sample report
request a free demo
came on stream in March 2017
UAErsquos Borouge has also ramped up pipe and HDPE film exports to China during the period according to a supplier in the Middle East
Meanwhile PE imports from Singapore surged 38 year on year while those from India more than doubled to 127000 tonnes according to China Customs data
The ban on waste plastics implemented in China in the year also bolstered imports of virgin PE Some waste plastics were processed overseas and then re-entered the market as virgin products but these volumes were limited
Last year China imported 194m tonnes of PE waste plastics while volumes in 2018 will be negligible with the implementation of the ban
Chinarsquos PE production is expected to increase by around 7 to about 17m tonnes in 2018 with imports projected to grow by 102 to around 13m tonnes according to a source from state-owned petrochemical giant PetroChina
Domestic demand for PE is forecast to grow by 8 this year mainly from the packaging and pipe markets
Chinarsquos ongoing campaign to switch to using gas for power generation instead of coal is expected to continue boosting demand for PE gas pipes this year
The packaging industry will also drive up PE consumption underpinned by growth in electronic commerce Chinarsquos express delivery volumes reached 137bn packages during January-April 2018 based on data from the China Express Industry Development Conference in May
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
By Dora Xue JuNe 2018
ChiNa PolyolefiNsMarket analysis on Chinese PolyProPylene and Polyethylene Markets
TighT suPPly To suPPorT ChiNa PP markeT DesPiTe weak DemaND
Tight supply could buoy Chinarsquos polypropylene (PP) prices in the near term despite weak downstream demand
The market is expecting heavy production losses following recent unexpected outages at five domestic facilities from May and scheduled turnarounds at other plants
In the week ending 1 June domestic prices for PP flat yarn in east China were assessed at Chinese yuan (CNY) 9075tonne after a steady increase from early April according to ICIS data
Chinarsquos import prices for the same material stood at $1245tonne CFR (cost and freight) China largely tracking movement in the domestic market over the past two months according to ICIS data
The strong PP prices have also started to deter buyers from purchasing more spot cargoes
ldquoPP prices are too high We donrsquot want to store too much in our warehouserdquo a buyer said
Downstream demand typically is in a lull in June and July but any downward pressure on prices will be negated by a further tightening of supply as major plants will be taken off line for maintenance
ldquoWhen the maintenance season finishes in late June [PP] prices may start to go downrdquo a trader said
iMPort origins of Polyethylene
region CompanyCapacity lsquo000 tonnesyear
shut-down restart
east China Fund Energy (Changzhou)
300 1-Jul-17 unknown
northeast China
Jinxi Petrochemical
146 27-Dec-17
31-Jul-18
southwest China
Sichuan Petrochemical
450 9-Apr 24-Jun-18
north China Datang Duolun
230 15-Apr unknown
north China Datang Duolun
230 15-Apr unknown
east China Sinopec Zhenhai
Refinery and Chemical
350 27-Apr 8-Jun-18
east China Fund Energy (Ningbo)
300 5-May Jul-18
east China Sinopec Zhenhai
Refinery and Chemical
200 26-May 7-Jun-18
Middle China
Sinopec Zhongyuan
Ethylene
110 20-May Jul-18
northwest China
Pucheng Clean Energy
440 6-May 13-May-18
northwest China
Pucheng Clean Energy
440 22-May 28-May-18
northwest China
Pucheng Clean Energy
440 3-Jun unknown
south China
Guangzhou Petrochemical
200 3-May 7-May-18
north China PetroChina Daqing Refinery
300 16-May 22-May-18
north China Daqing Refinery
300 28-May unknown
north China Zhongtian Hechuang
350 28-May 6-Jun-18
north China Hebei Haiwei 300 29-May 6-Jun-18
northwest China
Shaanxi Yanchang Coal Yulin
300 30-May 29-Jun-18
northwest China
Shaanxi Yanchang Coal Yulin
300 30-May 29-Jun-18
northeast China
North Huajin Chemical
50 10-Jun 10-Jul-18
northeast China
North Huajin Chemical
330 10-Jun 10-Jul-18
northwest China
Ningxia Baofeng Energy
330 7-Jun unknown
CHINA DOMESTIC PRICES VS IMPORT PRICES
7000
7500
8000
8500
9000
9500
10000
10500
CNYtonne USDtonne
PP Yarn Ex-Warehouse China E Assessment Chinese Material Spot 2-4 Weeks Full Market Range (Mid)CNYtonne
PP Flat Yarn (Raffia) CFR China Assessment Import Spot 0-8 Weeks Full Market Range (Mid)USDtonne
950
1000
1050
1100
1150
1200
1250
1300
Apr 2018Jan 2018Oct 2017Jul 2017Apr 2017
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
Demand was considered weakest at Qingdao in the eastern Shandong province due to government-mandated production cuts and logistics restrictions ahead of the Shanghai Cooperation Organisation (SCO) summit on 9-10 June
As of 1 June the combined polyolefin inventories of Chinese petrochemical majors Sinopec and PetroChina had declined to normal levels of 700000 tonnes from a high of 1m tonnes in early March market sources said
Import supply to China may not improve in the short term
as suppliers still deem other markets to be more lucrative including southeast Asia and Europe where prices are higher and the US where supply is tight
Prices of PP flat yarn in southeast Asia at $1305tonne CFR were higher by $60tonne compared with Chinarsquos import prices according to ICIS data
Chinarsquos actual PP import volumes in February and March were lower on a year-on-year basis based on official data while April imports also registered a decline according to market sources
Do you have The righT Tools To NavigaTe ChiNarsquos volaTile PolyProPyleNe markeTs
sPoT aND oPTimise oPPorTuNiTies iN The ChiNese PolyProPyleNe markeT
get the latest prices and commentary on price drivers with access to all of the following
n Importexport spotcontract and domestic pricesn Inventory levels and domestic price marginsn Plant and production news ndash shutdowns maintenance and turnaroundsn Commentary on supplydemand trends trading activity and updownstream markets as well as changes in
government policy
iCis now provides diagnostic and prescriptive solutions that offer a 360-degree view for China styrene complementing each pricing report subscription with these powerful tools
n live supply disruption tracker ndash Real-time view of domestic supply plant outages and start-ups for the next 12 months plus the impact of these changes
n Price drivers analytics ndash Key performance indicators such as importexport parity feedstock and downstream spreads substitution trends and arbitragenetback data
n a quarterly supply and demand outlook
request a free sample report
request a free demo
PP MONTHLY OUTPUT (IN THOUSAND TONNES)
1400
1450
1500
1550
1600
1650
1700
1750
1800
1850
MayAprMarFebJan
CHINA PP IMPORT VOLUMES (IN THOUSAND TONNES)
0
100
200
300
400
500
600
-60
-40
-20
0
20
40
60
80
AprMarFebJan2018 2017 YOY MON
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
ChiNa Pe imPorTs To sTay sTroNg amiD DomesTiC PlaNT TurNarouNDs
By aNgie li JuNe 2018
Chinarsquos polyethylene (PE) imports are expected to remain strong for the rest of the year after posting record volumes in January to April 2018 amid turnarounds at domestic facilities
Buyers in China have been accumulating imported PE cargoes as these were priced lower compared to futures prices since the start of the year
More cargoes will be available to China as new capacities in the US are expected to boost production
For May the countryrsquos PE imports are projected to reach 12m tonnes higher than the monthly average in the first four months of 2018
In January to April 2018 its PE imports volumes totalled 447m tonnes up by 12 from the previous corresponding period according to industry sources
The import volumes were making up for the production losses in the domestic market due to
scheduled turnarounds
On 1 June low density PE (LDPE) imports were assessed at $1155-1180tonne linear low density PE (LLDPE)
iMPort origins of Polyethylene
Country2018
Jan-Marshare
()2017
Jan-Marshare
() yoy
saudi arabia 73 21 525 17 39
iran 466 14 52 17 -10
United arab emirates
419 12 325 11 29
south korea 251 7 237 8 6
singapore 239 7 173 6 38
thailand 197 6 226 7 -13
america 185 5 205 7 -10
Qatar 153 4 128 4 19
india 127 4 56 2 127
kuwait 81 2 8 3 1
others 559 16 576 19 -3
total 3407 100 3051 100 1170
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
stood at $1150-1170tonne while high density PE (HDPE) film products were at $1340-1400tonne according to ICIS data
The prices have increased 15-62 from the end of March but the gains came in lower than market playersrsquo expectations considering the heavy production loss due to turnarounds from April
An estimated 500000 tonnes are expected to be shaved in the second quarter due to scheduled maintenance at domestic facilities according ICIS data
ldquoWe thought the hefty plant turnarounds in the second quarter should lead to a surge in PE prices but the LDPE and LLDPE prices were less than satisfactory
although HDPE prices [were] highrdquo said an east China-based trader referring to both the import and domestic PE prices
Strong imports amid hedging activities bloated the total supply in China in January to April to 998m tonnes up by 8 from the previous corresponding period with supply of LDPE and LLDPE up by 14 and 8 respectively market sources said
Imports of HDPE inched up by 2 over the same period given the gradersquos higher prices compared with LLDPE and LDPE
Increased availability due to recent capacity expansions and start-ups in Asia and the Middle East also fuels Chinarsquos appetite for import cargoes
In the first quarter of 2018 additional cargoes from Saudi Arabia were mostly from Sadara Chemical which started up its 750000 tonneyear swing plant and 350000 tonneyear LDPE plant in Al Jubail during late 2016 and early 2017 respectively
Cargoes of Iran origin augmented the total volume from the United Arab Emirates (UAE) as market players try to get around the financial sanctions on Tehran Kordestan Petrochemicalrsquos 300000 tonneyear LDPE plant in Iran
Polyethylene tUrnaroUnds
Producer
Pe Capacity lsquo000 tonnes
year scheduled tasichuan Petrochemical 600 8 April - 28 June
shanghai Petrochemical 90 From May to July
Jilin Petrochemical 610 10 May - 15 June
Zhenhai refining and Petrochemical 500 27 April - 8 June
daqing Petrochemical 1155 Estimated July to
September
Baotou Charcoal chemical 300 Estimated September
ningxia Baofeng energy 300 30 days from 7 June
to 7 July
shanghai secco 800 Estimated October to November
fujian refining and Petrochemical 1000
Estimated 40-50 days from November to Decemeber
shaanxi yanchang China Coal Chemical 600 30 May - 26 June
huajin Chmeical 330 10 June - 10 July
ningxia shenhua Chemical 450 8-23 April
huajin Chmeical 330 10 June - 10 July
CHINA POLYETHYLENE IMPORT PRICES IN H1 2018
1100
1150
1200
1250
1300
1350
1400
Jun 2018May 2018Apr 2018Mar 2018Feb 2018
USDtonne
Source xxxxxxxxxx Note xxxxxxxxxx
PE HDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
PE LDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
PE LLDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
8000
9000
10000
11000
12000
MayMarJan2018
NovSepJulyMayMarJan2017
LLDPE futureImport LDPE E China low end
POLYETHYLENE SPOT PRICE AND LLDPE FUTUREVALUES IN H1 2018CNYtonne
Import LLDPE E China low end
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
Do you have The righT Tools To NavigaTe ChiNarsquos volaTile PolyProPyleNe markeTs
sPoT aND oPTimise oPPorTuNiTies iN The ChiNese PolyProPyleNe markeT
get the latest prices and commentary on price drivers with access to all of the following
n Importexport spotcontract and domestic pricesn Inventory levels and domestic price marginsn Plant and production news ndash shutdowns maintenance and turnaroundsn Commentary on supplydemand trends trading activity and updownstream markets as well as changes in
government policy
iCis now provides diagnostic and prescriptive solutions that offer a 360-degree view for China styrene complementing each pricing report subscription with these powerful tools
n live supply disruption tracker ndash Real-time view of domestic supply plant outages and start-ups for the next 12 months plus the impact of these changes
n Price drivers analytics ndash Key performance indicators such as importexport parity feedstock and downstream spreads substitution trends and arbitragenetback data
n a quarterly supply and demand outlook
request a free sample report
request a free demo
came on stream in March 2017
UAErsquos Borouge has also ramped up pipe and HDPE film exports to China during the period according to a supplier in the Middle East
Meanwhile PE imports from Singapore surged 38 year on year while those from India more than doubled to 127000 tonnes according to China Customs data
The ban on waste plastics implemented in China in the year also bolstered imports of virgin PE Some waste plastics were processed overseas and then re-entered the market as virgin products but these volumes were limited
Last year China imported 194m tonnes of PE waste plastics while volumes in 2018 will be negligible with the implementation of the ban
Chinarsquos PE production is expected to increase by around 7 to about 17m tonnes in 2018 with imports projected to grow by 102 to around 13m tonnes according to a source from state-owned petrochemical giant PetroChina
Domestic demand for PE is forecast to grow by 8 this year mainly from the packaging and pipe markets
Chinarsquos ongoing campaign to switch to using gas for power generation instead of coal is expected to continue boosting demand for PE gas pipes this year
The packaging industry will also drive up PE consumption underpinned by growth in electronic commerce Chinarsquos express delivery volumes reached 137bn packages during January-April 2018 based on data from the China Express Industry Development Conference in May
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
Demand was considered weakest at Qingdao in the eastern Shandong province due to government-mandated production cuts and logistics restrictions ahead of the Shanghai Cooperation Organisation (SCO) summit on 9-10 June
As of 1 June the combined polyolefin inventories of Chinese petrochemical majors Sinopec and PetroChina had declined to normal levels of 700000 tonnes from a high of 1m tonnes in early March market sources said
Import supply to China may not improve in the short term
as suppliers still deem other markets to be more lucrative including southeast Asia and Europe where prices are higher and the US where supply is tight
Prices of PP flat yarn in southeast Asia at $1305tonne CFR were higher by $60tonne compared with Chinarsquos import prices according to ICIS data
Chinarsquos actual PP import volumes in February and March were lower on a year-on-year basis based on official data while April imports also registered a decline according to market sources
Do you have The righT Tools To NavigaTe ChiNarsquos volaTile PolyProPyleNe markeTs
sPoT aND oPTimise oPPorTuNiTies iN The ChiNese PolyProPyleNe markeT
get the latest prices and commentary on price drivers with access to all of the following
n Importexport spotcontract and domestic pricesn Inventory levels and domestic price marginsn Plant and production news ndash shutdowns maintenance and turnaroundsn Commentary on supplydemand trends trading activity and updownstream markets as well as changes in
government policy
iCis now provides diagnostic and prescriptive solutions that offer a 360-degree view for China styrene complementing each pricing report subscription with these powerful tools
n live supply disruption tracker ndash Real-time view of domestic supply plant outages and start-ups for the next 12 months plus the impact of these changes
n Price drivers analytics ndash Key performance indicators such as importexport parity feedstock and downstream spreads substitution trends and arbitragenetback data
n a quarterly supply and demand outlook
request a free sample report
request a free demo
PP MONTHLY OUTPUT (IN THOUSAND TONNES)
1400
1450
1500
1550
1600
1650
1700
1750
1800
1850
MayAprMarFebJan
CHINA PP IMPORT VOLUMES (IN THOUSAND TONNES)
0
100
200
300
400
500
600
-60
-40
-20
0
20
40
60
80
AprMarFebJan2018 2017 YOY MON
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
ChiNa Pe imPorTs To sTay sTroNg amiD DomesTiC PlaNT TurNarouNDs
By aNgie li JuNe 2018
Chinarsquos polyethylene (PE) imports are expected to remain strong for the rest of the year after posting record volumes in January to April 2018 amid turnarounds at domestic facilities
Buyers in China have been accumulating imported PE cargoes as these were priced lower compared to futures prices since the start of the year
More cargoes will be available to China as new capacities in the US are expected to boost production
For May the countryrsquos PE imports are projected to reach 12m tonnes higher than the monthly average in the first four months of 2018
In January to April 2018 its PE imports volumes totalled 447m tonnes up by 12 from the previous corresponding period according to industry sources
The import volumes were making up for the production losses in the domestic market due to
scheduled turnarounds
On 1 June low density PE (LDPE) imports were assessed at $1155-1180tonne linear low density PE (LLDPE)
iMPort origins of Polyethylene
Country2018
Jan-Marshare
()2017
Jan-Marshare
() yoy
saudi arabia 73 21 525 17 39
iran 466 14 52 17 -10
United arab emirates
419 12 325 11 29
south korea 251 7 237 8 6
singapore 239 7 173 6 38
thailand 197 6 226 7 -13
america 185 5 205 7 -10
Qatar 153 4 128 4 19
india 127 4 56 2 127
kuwait 81 2 8 3 1
others 559 16 576 19 -3
total 3407 100 3051 100 1170
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
stood at $1150-1170tonne while high density PE (HDPE) film products were at $1340-1400tonne according to ICIS data
The prices have increased 15-62 from the end of March but the gains came in lower than market playersrsquo expectations considering the heavy production loss due to turnarounds from April
An estimated 500000 tonnes are expected to be shaved in the second quarter due to scheduled maintenance at domestic facilities according ICIS data
ldquoWe thought the hefty plant turnarounds in the second quarter should lead to a surge in PE prices but the LDPE and LLDPE prices were less than satisfactory
although HDPE prices [were] highrdquo said an east China-based trader referring to both the import and domestic PE prices
Strong imports amid hedging activities bloated the total supply in China in January to April to 998m tonnes up by 8 from the previous corresponding period with supply of LDPE and LLDPE up by 14 and 8 respectively market sources said
Imports of HDPE inched up by 2 over the same period given the gradersquos higher prices compared with LLDPE and LDPE
Increased availability due to recent capacity expansions and start-ups in Asia and the Middle East also fuels Chinarsquos appetite for import cargoes
In the first quarter of 2018 additional cargoes from Saudi Arabia were mostly from Sadara Chemical which started up its 750000 tonneyear swing plant and 350000 tonneyear LDPE plant in Al Jubail during late 2016 and early 2017 respectively
Cargoes of Iran origin augmented the total volume from the United Arab Emirates (UAE) as market players try to get around the financial sanctions on Tehran Kordestan Petrochemicalrsquos 300000 tonneyear LDPE plant in Iran
Polyethylene tUrnaroUnds
Producer
Pe Capacity lsquo000 tonnes
year scheduled tasichuan Petrochemical 600 8 April - 28 June
shanghai Petrochemical 90 From May to July
Jilin Petrochemical 610 10 May - 15 June
Zhenhai refining and Petrochemical 500 27 April - 8 June
daqing Petrochemical 1155 Estimated July to
September
Baotou Charcoal chemical 300 Estimated September
ningxia Baofeng energy 300 30 days from 7 June
to 7 July
shanghai secco 800 Estimated October to November
fujian refining and Petrochemical 1000
Estimated 40-50 days from November to Decemeber
shaanxi yanchang China Coal Chemical 600 30 May - 26 June
huajin Chmeical 330 10 June - 10 July
ningxia shenhua Chemical 450 8-23 April
huajin Chmeical 330 10 June - 10 July
CHINA POLYETHYLENE IMPORT PRICES IN H1 2018
1100
1150
1200
1250
1300
1350
1400
Jun 2018May 2018Apr 2018Mar 2018Feb 2018
USDtonne
Source xxxxxxxxxx Note xxxxxxxxxx
PE HDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
PE LDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
PE LLDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
8000
9000
10000
11000
12000
MayMarJan2018
NovSepJulyMayMarJan2017
LLDPE futureImport LDPE E China low end
POLYETHYLENE SPOT PRICE AND LLDPE FUTUREVALUES IN H1 2018CNYtonne
Import LLDPE E China low end
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
Do you have The righT Tools To NavigaTe ChiNarsquos volaTile PolyProPyleNe markeTs
sPoT aND oPTimise oPPorTuNiTies iN The ChiNese PolyProPyleNe markeT
get the latest prices and commentary on price drivers with access to all of the following
n Importexport spotcontract and domestic pricesn Inventory levels and domestic price marginsn Plant and production news ndash shutdowns maintenance and turnaroundsn Commentary on supplydemand trends trading activity and updownstream markets as well as changes in
government policy
iCis now provides diagnostic and prescriptive solutions that offer a 360-degree view for China styrene complementing each pricing report subscription with these powerful tools
n live supply disruption tracker ndash Real-time view of domestic supply plant outages and start-ups for the next 12 months plus the impact of these changes
n Price drivers analytics ndash Key performance indicators such as importexport parity feedstock and downstream spreads substitution trends and arbitragenetback data
n a quarterly supply and demand outlook
request a free sample report
request a free demo
came on stream in March 2017
UAErsquos Borouge has also ramped up pipe and HDPE film exports to China during the period according to a supplier in the Middle East
Meanwhile PE imports from Singapore surged 38 year on year while those from India more than doubled to 127000 tonnes according to China Customs data
The ban on waste plastics implemented in China in the year also bolstered imports of virgin PE Some waste plastics were processed overseas and then re-entered the market as virgin products but these volumes were limited
Last year China imported 194m tonnes of PE waste plastics while volumes in 2018 will be negligible with the implementation of the ban
Chinarsquos PE production is expected to increase by around 7 to about 17m tonnes in 2018 with imports projected to grow by 102 to around 13m tonnes according to a source from state-owned petrochemical giant PetroChina
Domestic demand for PE is forecast to grow by 8 this year mainly from the packaging and pipe markets
Chinarsquos ongoing campaign to switch to using gas for power generation instead of coal is expected to continue boosting demand for PE gas pipes this year
The packaging industry will also drive up PE consumption underpinned by growth in electronic commerce Chinarsquos express delivery volumes reached 137bn packages during January-April 2018 based on data from the China Express Industry Development Conference in May
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
ChiNa Pe imPorTs To sTay sTroNg amiD DomesTiC PlaNT TurNarouNDs
By aNgie li JuNe 2018
Chinarsquos polyethylene (PE) imports are expected to remain strong for the rest of the year after posting record volumes in January to April 2018 amid turnarounds at domestic facilities
Buyers in China have been accumulating imported PE cargoes as these were priced lower compared to futures prices since the start of the year
More cargoes will be available to China as new capacities in the US are expected to boost production
For May the countryrsquos PE imports are projected to reach 12m tonnes higher than the monthly average in the first four months of 2018
In January to April 2018 its PE imports volumes totalled 447m tonnes up by 12 from the previous corresponding period according to industry sources
The import volumes were making up for the production losses in the domestic market due to
scheduled turnarounds
On 1 June low density PE (LDPE) imports were assessed at $1155-1180tonne linear low density PE (LLDPE)
iMPort origins of Polyethylene
Country2018
Jan-Marshare
()2017
Jan-Marshare
() yoy
saudi arabia 73 21 525 17 39
iran 466 14 52 17 -10
United arab emirates
419 12 325 11 29
south korea 251 7 237 8 6
singapore 239 7 173 6 38
thailand 197 6 226 7 -13
america 185 5 205 7 -10
Qatar 153 4 128 4 19
india 127 4 56 2 127
kuwait 81 2 8 3 1
others 559 16 576 19 -3
total 3407 100 3051 100 1170
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
stood at $1150-1170tonne while high density PE (HDPE) film products were at $1340-1400tonne according to ICIS data
The prices have increased 15-62 from the end of March but the gains came in lower than market playersrsquo expectations considering the heavy production loss due to turnarounds from April
An estimated 500000 tonnes are expected to be shaved in the second quarter due to scheduled maintenance at domestic facilities according ICIS data
ldquoWe thought the hefty plant turnarounds in the second quarter should lead to a surge in PE prices but the LDPE and LLDPE prices were less than satisfactory
although HDPE prices [were] highrdquo said an east China-based trader referring to both the import and domestic PE prices
Strong imports amid hedging activities bloated the total supply in China in January to April to 998m tonnes up by 8 from the previous corresponding period with supply of LDPE and LLDPE up by 14 and 8 respectively market sources said
Imports of HDPE inched up by 2 over the same period given the gradersquos higher prices compared with LLDPE and LDPE
Increased availability due to recent capacity expansions and start-ups in Asia and the Middle East also fuels Chinarsquos appetite for import cargoes
In the first quarter of 2018 additional cargoes from Saudi Arabia were mostly from Sadara Chemical which started up its 750000 tonneyear swing plant and 350000 tonneyear LDPE plant in Al Jubail during late 2016 and early 2017 respectively
Cargoes of Iran origin augmented the total volume from the United Arab Emirates (UAE) as market players try to get around the financial sanctions on Tehran Kordestan Petrochemicalrsquos 300000 tonneyear LDPE plant in Iran
Polyethylene tUrnaroUnds
Producer
Pe Capacity lsquo000 tonnes
year scheduled tasichuan Petrochemical 600 8 April - 28 June
shanghai Petrochemical 90 From May to July
Jilin Petrochemical 610 10 May - 15 June
Zhenhai refining and Petrochemical 500 27 April - 8 June
daqing Petrochemical 1155 Estimated July to
September
Baotou Charcoal chemical 300 Estimated September
ningxia Baofeng energy 300 30 days from 7 June
to 7 July
shanghai secco 800 Estimated October to November
fujian refining and Petrochemical 1000
Estimated 40-50 days from November to Decemeber
shaanxi yanchang China Coal Chemical 600 30 May - 26 June
huajin Chmeical 330 10 June - 10 July
ningxia shenhua Chemical 450 8-23 April
huajin Chmeical 330 10 June - 10 July
CHINA POLYETHYLENE IMPORT PRICES IN H1 2018
1100
1150
1200
1250
1300
1350
1400
Jun 2018May 2018Apr 2018Mar 2018Feb 2018
USDtonne
Source xxxxxxxxxx Note xxxxxxxxxx
PE HDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
PE LDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
PE LLDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
8000
9000
10000
11000
12000
MayMarJan2018
NovSepJulyMayMarJan2017
LLDPE futureImport LDPE E China low end
POLYETHYLENE SPOT PRICE AND LLDPE FUTUREVALUES IN H1 2018CNYtonne
Import LLDPE E China low end
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
Do you have The righT Tools To NavigaTe ChiNarsquos volaTile PolyProPyleNe markeTs
sPoT aND oPTimise oPPorTuNiTies iN The ChiNese PolyProPyleNe markeT
get the latest prices and commentary on price drivers with access to all of the following
n Importexport spotcontract and domestic pricesn Inventory levels and domestic price marginsn Plant and production news ndash shutdowns maintenance and turnaroundsn Commentary on supplydemand trends trading activity and updownstream markets as well as changes in
government policy
iCis now provides diagnostic and prescriptive solutions that offer a 360-degree view for China styrene complementing each pricing report subscription with these powerful tools
n live supply disruption tracker ndash Real-time view of domestic supply plant outages and start-ups for the next 12 months plus the impact of these changes
n Price drivers analytics ndash Key performance indicators such as importexport parity feedstock and downstream spreads substitution trends and arbitragenetback data
n a quarterly supply and demand outlook
request a free sample report
request a free demo
came on stream in March 2017
UAErsquos Borouge has also ramped up pipe and HDPE film exports to China during the period according to a supplier in the Middle East
Meanwhile PE imports from Singapore surged 38 year on year while those from India more than doubled to 127000 tonnes according to China Customs data
The ban on waste plastics implemented in China in the year also bolstered imports of virgin PE Some waste plastics were processed overseas and then re-entered the market as virgin products but these volumes were limited
Last year China imported 194m tonnes of PE waste plastics while volumes in 2018 will be negligible with the implementation of the ban
Chinarsquos PE production is expected to increase by around 7 to about 17m tonnes in 2018 with imports projected to grow by 102 to around 13m tonnes according to a source from state-owned petrochemical giant PetroChina
Domestic demand for PE is forecast to grow by 8 this year mainly from the packaging and pipe markets
Chinarsquos ongoing campaign to switch to using gas for power generation instead of coal is expected to continue boosting demand for PE gas pipes this year
The packaging industry will also drive up PE consumption underpinned by growth in electronic commerce Chinarsquos express delivery volumes reached 137bn packages during January-April 2018 based on data from the China Express Industry Development Conference in May
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
stood at $1150-1170tonne while high density PE (HDPE) film products were at $1340-1400tonne according to ICIS data
The prices have increased 15-62 from the end of March but the gains came in lower than market playersrsquo expectations considering the heavy production loss due to turnarounds from April
An estimated 500000 tonnes are expected to be shaved in the second quarter due to scheduled maintenance at domestic facilities according ICIS data
ldquoWe thought the hefty plant turnarounds in the second quarter should lead to a surge in PE prices but the LDPE and LLDPE prices were less than satisfactory
although HDPE prices [were] highrdquo said an east China-based trader referring to both the import and domestic PE prices
Strong imports amid hedging activities bloated the total supply in China in January to April to 998m tonnes up by 8 from the previous corresponding period with supply of LDPE and LLDPE up by 14 and 8 respectively market sources said
Imports of HDPE inched up by 2 over the same period given the gradersquos higher prices compared with LLDPE and LDPE
Increased availability due to recent capacity expansions and start-ups in Asia and the Middle East also fuels Chinarsquos appetite for import cargoes
In the first quarter of 2018 additional cargoes from Saudi Arabia were mostly from Sadara Chemical which started up its 750000 tonneyear swing plant and 350000 tonneyear LDPE plant in Al Jubail during late 2016 and early 2017 respectively
Cargoes of Iran origin augmented the total volume from the United Arab Emirates (UAE) as market players try to get around the financial sanctions on Tehran Kordestan Petrochemicalrsquos 300000 tonneyear LDPE plant in Iran
Polyethylene tUrnaroUnds
Producer
Pe Capacity lsquo000 tonnes
year scheduled tasichuan Petrochemical 600 8 April - 28 June
shanghai Petrochemical 90 From May to July
Jilin Petrochemical 610 10 May - 15 June
Zhenhai refining and Petrochemical 500 27 April - 8 June
daqing Petrochemical 1155 Estimated July to
September
Baotou Charcoal chemical 300 Estimated September
ningxia Baofeng energy 300 30 days from 7 June
to 7 July
shanghai secco 800 Estimated October to November
fujian refining and Petrochemical 1000
Estimated 40-50 days from November to Decemeber
shaanxi yanchang China Coal Chemical 600 30 May - 26 June
huajin Chmeical 330 10 June - 10 July
ningxia shenhua Chemical 450 8-23 April
huajin Chmeical 330 10 June - 10 July
CHINA POLYETHYLENE IMPORT PRICES IN H1 2018
1100
1150
1200
1250
1300
1350
1400
Jun 2018May 2018Apr 2018Mar 2018Feb 2018
USDtonne
Source xxxxxxxxxx Note xxxxxxxxxx
PE HDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
PE LDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
PE LLDPE Film CFR China Assessment Import Spot Week-Ahead Full Market Range (Mid)
8000
9000
10000
11000
12000
MayMarJan2018
NovSepJulyMayMarJan2017
LLDPE futureImport LDPE E China low end
POLYETHYLENE SPOT PRICE AND LLDPE FUTUREVALUES IN H1 2018CNYtonne
Import LLDPE E China low end
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
Do you have The righT Tools To NavigaTe ChiNarsquos volaTile PolyProPyleNe markeTs
sPoT aND oPTimise oPPorTuNiTies iN The ChiNese PolyProPyleNe markeT
get the latest prices and commentary on price drivers with access to all of the following
n Importexport spotcontract and domestic pricesn Inventory levels and domestic price marginsn Plant and production news ndash shutdowns maintenance and turnaroundsn Commentary on supplydemand trends trading activity and updownstream markets as well as changes in
government policy
iCis now provides diagnostic and prescriptive solutions that offer a 360-degree view for China styrene complementing each pricing report subscription with these powerful tools
n live supply disruption tracker ndash Real-time view of domestic supply plant outages and start-ups for the next 12 months plus the impact of these changes
n Price drivers analytics ndash Key performance indicators such as importexport parity feedstock and downstream spreads substitution trends and arbitragenetback data
n a quarterly supply and demand outlook
request a free sample report
request a free demo
came on stream in March 2017
UAErsquos Borouge has also ramped up pipe and HDPE film exports to China during the period according to a supplier in the Middle East
Meanwhile PE imports from Singapore surged 38 year on year while those from India more than doubled to 127000 tonnes according to China Customs data
The ban on waste plastics implemented in China in the year also bolstered imports of virgin PE Some waste plastics were processed overseas and then re-entered the market as virgin products but these volumes were limited
Last year China imported 194m tonnes of PE waste plastics while volumes in 2018 will be negligible with the implementation of the ban
Chinarsquos PE production is expected to increase by around 7 to about 17m tonnes in 2018 with imports projected to grow by 102 to around 13m tonnes according to a source from state-owned petrochemical giant PetroChina
Domestic demand for PE is forecast to grow by 8 this year mainly from the packaging and pipe markets
Chinarsquos ongoing campaign to switch to using gas for power generation instead of coal is expected to continue boosting demand for PE gas pipes this year
The packaging industry will also drive up PE consumption underpinned by growth in electronic commerce Chinarsquos express delivery volumes reached 137bn packages during January-April 2018 based on data from the China Express Industry Development Conference in May
request a free sample report
Copyright 2018 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
Do you have The righT Tools To NavigaTe ChiNarsquos volaTile PolyProPyleNe markeTs
sPoT aND oPTimise oPPorTuNiTies iN The ChiNese PolyProPyleNe markeT
get the latest prices and commentary on price drivers with access to all of the following
n Importexport spotcontract and domestic pricesn Inventory levels and domestic price marginsn Plant and production news ndash shutdowns maintenance and turnaroundsn Commentary on supplydemand trends trading activity and updownstream markets as well as changes in
government policy
iCis now provides diagnostic and prescriptive solutions that offer a 360-degree view for China styrene complementing each pricing report subscription with these powerful tools
n live supply disruption tracker ndash Real-time view of domestic supply plant outages and start-ups for the next 12 months plus the impact of these changes
n Price drivers analytics ndash Key performance indicators such as importexport parity feedstock and downstream spreads substitution trends and arbitragenetback data
n a quarterly supply and demand outlook
request a free sample report
request a free demo
came on stream in March 2017
UAErsquos Borouge has also ramped up pipe and HDPE film exports to China during the period according to a supplier in the Middle East
Meanwhile PE imports from Singapore surged 38 year on year while those from India more than doubled to 127000 tonnes according to China Customs data
The ban on waste plastics implemented in China in the year also bolstered imports of virgin PE Some waste plastics were processed overseas and then re-entered the market as virgin products but these volumes were limited
Last year China imported 194m tonnes of PE waste plastics while volumes in 2018 will be negligible with the implementation of the ban
Chinarsquos PE production is expected to increase by around 7 to about 17m tonnes in 2018 with imports projected to grow by 102 to around 13m tonnes according to a source from state-owned petrochemical giant PetroChina
Domestic demand for PE is forecast to grow by 8 this year mainly from the packaging and pipe markets
Chinarsquos ongoing campaign to switch to using gas for power generation instead of coal is expected to continue boosting demand for PE gas pipes this year
The packaging industry will also drive up PE consumption underpinned by growth in electronic commerce Chinarsquos express delivery volumes reached 137bn packages during January-April 2018 based on data from the China Express Industry Development Conference in May
request a free sample report
