China’s 2013 petchem industry growth forecast at 9-10% - KPMG

18 April 2013 15:13  [Source: ICIS news]

SHANGHAI (ICIS)--China’s petrochemical industry growth is forecast to grow at 9-10% in 2013 if the country’s GDP growth rate for the year hovers around 7.5-8.0%, domestic consumer spending keeps rising on the back of massive urbanisation and the middle class grows, a senior executive of KPMG Shanghai said on Thursday.

Chinese specialty chemicals would grow faster than commodities, and consumer-related chemicals would grow rapidly because the Chinese government was focused on increasing domestic consumption, said Norbert Meyring, a Partner at KPMG Shanghai.

Meyring was speaking at the 7th China Petrochemical Forum, a two-day conference which ends on Friday.

Chinese state-backed chemical entities were likely to become more active acquirers of foreign assets as they sought technology to support their downstream expansions, said Meyring.

China’s petrochemical capacity would increase in 2013 and beyond because the country’s GDP growth would significantly outpace world economic growth in the coming years, he said.

But China’s GDP growth was expected to slow down to around 6% in the mid-to-long term as a result of demographic changes, reduced exports because of a stronger Chinese yuan, and rising labour costs, he added.

By: Chow Bee Lin
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index