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By John Richardson
CHINA’s polyethylene (PE) and polypropylene (PP) demand growth is set for a dramatic decline in 2010-12, according to the latest estimates from Shanghai-based commodities information service CBI (see table at the end of this blog post).
This year was probably never going to be as good as 2009 due to the need to cool the Chinese economy down following the biggest economic stimulus in the history of the world.
But the extent of the declines being forecast – and these numbers are in line with industry expectations – are perhaps bigger than some of the optimists anticipated.
For example, overall PE growth is expected to fall to 8.6% in 2010, 7.7% in 2011 and 7.4% in 2012. Growth last year was a staggering 30.3%!