BLOG: China could become a PP net exporter next year

John Richardson

08-Dec-2021

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson.

Wow! China may become a net exporter of 600,000 tonnes of polypropylene (PP) in 2022 from net imports of 6.1m tonnes in 2020.

Positive Chinese PP demand growth in 2021-2022 seems likely, unlike in polyethylene (PE) where this year is shaping up to be a year of negative growth. But PP growth is moderating on the Common Prosperity policy pivot.

A far bigger deal is the possibility that China will become a net exporter in 2022, a year earlier than we had expected.

This would be result of the slightly moderating demand growth, more availability of local feedstock to run plants hard and a further 11% increase capacity in 2022 following a 13% rise this year.

When you consider that in 2020, ICIS estimates that China accounted for 43% of global net imports amongst the countries and regions that imported more than they exported, this is a massive deal.

The major exporters to China – South Korea, Saudi Arabia, Thailand, the UAE and Singapore etc. – could be in a very challenging position.

Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.

READ MORE

ICIS Premium news service

The subscription platform provides access to our full range of breaking news and analysis

Contact us now to find out more

Speak with ICIS

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?