BLOG: China polyethylene imports set to remain very strong in 2021

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. Today we provide you with your essential outlook for China’s polyethylene (PE) imports in 2021 from its major trading partners. But we start with the context of why imports may remain strong despite big local capacity additions – the boom in pandemic-related demand which has led to strong margins. Strong profitability looks set to continue. In summary here, overall high-density PE imports could slip to either 8.1m tonnes or 7.7m tonnes in 2021 from last year’s 9.1m tonnes. Low-density PE imports may rise to either 4.2m tonnes or 4.3m tonnes from 3.4m tonnes. Linear-low density PE imports could increase to either 7.1m tonnes or 7m tonnes from 6.7m tonnes. As we have already detailed in paraxylene, however – and will detail in a later post covering polypropylene and styrene – China’s push towards greater self-sufficiency will likely lead to sharp declines in imports. This would leave China’s big trading partners struggling to find sufficient alternative markets. All looks set to remain good in ethylene glycol imports, though, which will also be a theme of the later post.

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.