07 May 2010 10:59 [Source: ICIS news]
By Fanny Zhang
GUANGZHOU (ICIS news)--China’s massive infrastructure projects and strong economic expansion will likely keep its demand for polyolefins strong, despite a forced slowdown in the country's housing sector, analysts and industry sources said on Friday.
Polyethylene (PE) and polypropylene (PP) pipes used in the construction sector account for only a fraction of total polyolefin sales, with the bulk going into packaging, automotive and medical segments, they said.
The authorities had implemented a series of measures to prevent a housing bubble, in line with
The measures, deemed necessary after
“Polyolefin pipe is a very small part of products, and we would not be affected from a weakening housing market," said an official at Foshan Plastic based in southern
“The Chinese economy has been improving continuously, there’s no worry on any decrease of chemical consumptions,” said Liu Qiyuan, chief analyst at Shenzhen-based China Merchants Securities (CMS).
Despite the curbs on the property sector, construction activities in
“The government would adjust its policies to ensure that overall economy wouldn’t be hit much by downturn on commercial housing,” Liu added.
($1 = CNY6.83)
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