LONDON (ICIS)--Click here to see the latest blog post on Asian Chemical Connections. Polypropylene (PP) and styrene monomer (SM) exporters to China need to diversify downstream. This is one answer to the risk that China becomes self-sufficient in both products by 2023-2025. But because China completely dominates the global polyester fibres, polyethylene terephthalate (PET) films and PET bottles industries, paraxylene (PX) exporters have no such options, Consolidation might thus be essential. China's push to petrochemicals self-sufficiency is an example of the interplay between two of today's four megatrends - demographics and geopolitics. China needs to compensate for an ageing population by moving up the manufacturing value chain, with petrochemicals one route to achieve this. In a very uncertain geopolitical world because of the US/China split, China needs greater local supply security.
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.