APIC '12: China polymers demand to hit 80m t in 2020 - consultant

17 May 2012 04:49  [Source: ICIS news]

KUALA LUMPUR (ICIS)--China’s polymers demand is expected to reach about 80m tonnes in 2020, with the country likely to continue being the largest contributor in the global chemicals market, a consultancy firm said on Tuesday.

“China's huge population base, with a rapidly growing ecoomy and middle class, results in a large appetite for chemicals, plastics, and synthetic fibres, both to support exports of finished goods, but also for consumption of finished goods,” according to an IHS Chemical presentation at the Asia Petrochemical Industry Conference (APIC) in Kuala Lumpur, Malaysia.

China will continue to actively invest in chemical facilities that will use conventional production methods, and in those that will convert its large coal resources into chemicals, IHS Chemicals said.

At least 11 coal-to-olefin projects are scheduled to come on line in China over the next five years, boosting the country's overall olefins capacity by about 7m tonnes, according to Steve Zinger, senior director of product management at IHS Chemical.

Zinger said that chemical companies in Asia will have to focus on rapid demand and investment growth in China, India and southeast Asia.

Regional firms will also need to keep a low-cost profile via integration with upstream refining operations, “which is particularly important if exporting or selling into commodity markets”, he said.

They will also have to protect their revenues through product portfolio upgrades into specialty or value-added commodities, Zinger added.

APIC runs from 17-18 May.

By: Nurluqman Suratman

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