BLOG: China PP demand in 2022: Latest data suggest flat growth, down from 4%
SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson.
China’s 2022 polypropylene (PP) demand growth may only be flat over next year, down from earlier data suggested 4%, the blog believes.
Of course, we must be careful here. Time and again, China has confounded the pessimists through effective economic stimulus. Just look what happened in H2 2020.
But you need to prepare a scenario for this time being different because of claims that the zero-COVID lockdowns will continue for most of the rest this year.
Then again, the great news is that Shanghai – responsible for at the very least 3.8% of China’s GDP – has started to re-open.
As you stress test your business against weaker-than-expected demand – using ICIS data and the support of our excellent analysts and consultants, including our great team in China – also consider the downside risks for
China’s net imports. The blog’s latest worst-case outcome for net imports sees them falling to just 200,000 tonnes this year from 2021’s 3.4m tonnes.
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.