NPRA ’09: China stimulus package boosts chemical demand

29 March 2009 18:53  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--The Chinese government's economic stimulus measures have delivered a rapid and significant boost to business conditions and to chemical demand, Asian market participants said on Sunday.

"We say the night is over, and the dawn is coming," a Chinese source said on the sidelines of the National Petrochemical & Refiners Association (NPRA) meeting in San Antonio.

The influx of government funds into the banking system has been effective in giving small and medium-sized companies in China access to credit, said that source and another market participant from Korea.

That has been a key factor in lifting chemical demand and prices in Asia after the sharp plunge in both that occurred in late 2008, they said.

Investment in public works projects, such as China's high-speed rail network, was also delivering a tangible boost to demand for raw materials, including chemicals such as polypropylene, the Chinese source said.

A Chinese olefins producer also had an optimistic view for the country, saying that there was a real prospect for a "soft landing" for the economy later in 2009.

China's gross domestic product growth this year could approach a goal of 8%, he said.

Some market participants have said the China-led rebound in Asian chemical markets could be short-lived.

NPRA's 2009 International Petrochemical Conference began on Sunday and runs through Tuesday.

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By: Stephen Burns
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