25 March 2013 15:44 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--China’s consumption of monoethylene glycol (MEG) is expected to grow 8% this year from 11m tonnes in 2012, an executive of MEGlobal said on Monday.
The country’s demand for the raw material for polyester production will grow at a slightly higher rate than its economic growth, sustaining the pace of increase registered last year, MEGlobal executive vice president Frank Hanraets told ICIS on the sidelines of the International Petrochemical Conference (IPC).
China, which is the world’s second biggest economy, accounts for roughly half of the global demand for MEG which was estimated at around 23m tonnes in 2011, Hanraets said.
The country is keeping its GDP growth target of 7.5% for a second year in 2013. In 2012, the country’s GDP growth was at 13-year low of 7.8%, lower than the 9.2% expansion recorded in the previous year.
Although slowing down, China’s economy continues to grow at a strong pace compared with the rest of the world, Hanraets noted.
Global consumption of MEG is forecast to increase at a slower rate of 5-6%, with a slight improvement in the US and no growth in Europe, he said.
MEGlobal is a major producer of MEG that exports to Asia.
Hosted by the American Fuel and Petrochemical Manufacturers (AFPM), the IPC runs through Tuesday.
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