31 March 2014 16:59 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--China is expected to add about 20m tonnes in new polymer capacities over the next four years, about 37% more than the projected increase in domestic demand for the period, an executive at a global trading firm said on Monday.
“The biggest challenge in Asia is the new capacity that are coming up in China,” Tricon Energy global product director Sanjay Moolji told ICIS on the sidelines of the International Petrochemical Conference (IPC).
Incremental demand over the same period, on the other hand, is expected to be 6.7m tonnes for PE and 5.5m tonnes for PP, he said.
“These new capacities will [prompt] a change in the balance of trades because China is moving towards self-sufficiency,” Moolji said.
China – the world’s second-biggest economy – is a key import market for petrochemicals in Asia.
Massive capacity additions in the country in recent years has been triggering a shift in global trade flows, as its main exporters such as South Korea and the Middle East are being forced to look for alternative markets for their products, Moolji said.
“It does not mean that [China] will stop imports. Imports will continue but the volumes will be much less than what we have been seeing in the last few years,” he said.
Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.
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