BARCELONA (ICIS)--Sky high petrochemical prices, which are fuelling downstream inflation, could become deflationary as China’s massive build-out of projects comes onstream.
- China’s capacity expansions may cause
petrochemicals overcapacity, price
- Asia margins for polyethylene (PE) and polypropylene (PP) already weakening
- Styrene monomer (SM), paraxylene (PX), ethylene glycol (EG) also affected
- 2021 is a watershed year as capacities ramp up
- China may reportedly be able to source cheaper raw materials from Iran
- Countries which rely on exports to China must seek new business models, markets
- Plastic recycling infrastructure must be ramped up quickly
- Entire plastics value chain should take responsibility for boosting recycling
- Petrochemical industry leaders need to publicly commit to hit recycling targets
- Developing world faces big problems in improving recycling
- Global pact similar to Paris Climate Change agreement may be required
Will Beacham interviews Nigel Davis, ICIS Insight Editor, John Richardson, ICIS Senior Consultant Asia, and Paul Hodges, chairman of New Normal Consulting.
Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.
ICIS is organising regular updates to help the industry understaind current market trends. Register here .
Read the latest issue of ICIS Chemical Business.
Read Paul Hodges and John Richardson's ICIS blogs.
Interview by Will Beacham