BLOG: China PE demand good so far in 2020 but beware of risks ahead
LONDON (ICIS)–Click here to see the latest blog post on Asian Chemical Connections. China’s booming exports of finished goods and strong local packaging demand has led to a 7% rise in the country’s polyethylene (PE) demand so far in 2020, comfortably ahead of our 3% estimate for the full year. But how long can the export growth be sustained now that government stimulus is being withdrawn and restructured in the West?
China’s domestic economy may also continue to be held back by weak retail sales. And beware of oil markets. The correction I’ve been warning about since May now appears to be underway. If the weaker crude market of the last few days persists we may see a destocking process in PE. But still, so far so good. China’s PE demand has been resilient.
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.