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China: 2010 PE Market Prospect

News Source:http://www.jinchemical.com/ ; SendDate:2010-7-23 11:04:42 
Zhenhai Etylenes 450,000 tonnes/year full-density PE unit was put into production in June and a supply increment of 3.05 million tones/year will be highly concerned in the second half of the year.

Output of plastic products in Jan-May increased 22.3% from the same period of 2009. The growth was high but the upward pace slowed.

Many players reported poor sales and had doubts of the figure. But I think its very possible. Transactions were limited in the first half of 2010 following stimulus package at the end of 2008.

The effect of the CNY4000 billion stimulus plan is waning and whether new stimulus policies will be issued in the second half of 2010 is most concerned. At present, financial policy and moderately loosened monetary policy are not working well.

If domestic economy is tightened, many low value-added industries including the plastic industry will disappear. Credit crunching policy is favorable to long-term economic structural adjustment, but it will lead to many problems such as high unemployment rate, which will hit Chinese economic growth.

In the second half of 2010, PE market will be thorny.
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