[Plastic] Various capitals accelerate investment in polyethylene

Due to the long-term demand gap, coupled with stable, continuous and considerable profitability expectations, China's polyethylene as a star variety in bulk commodities will continue to be widely sought after by new supply entities.

In November 2017, the U.

The growth rate of polyethylene supply in my country is faster than the growth rate of demand, but the future will still rely extensively on imports

From 2010 to 2017, my country's polyethylene industry developed rapidly.

From 2017 to 2025, the growth rate of my country's polyethylene supply capacity will continue to accelerate.

Since the future supply growth rate is expected to be faster than the demand growth rate, my country's polyethylene imports are expected to slowly increase from 11.

Optimistic demand prospects support polyethylene products are widely sought after

Because linear low-density polyethylene (LLDPE) has higher tensile strength, penetration resistance, tear resistance and elongation, it is more suitable for film making, followed by injection molding, wire and cable, rotomolding, etc.

my country's high-density polyethylene (HDPE) products are classified according to application fields, and can be divided into film, injection molding, hollow, pipe, and wire drawing applications.

my country's low-density polyethylene (LDPE) products are classified according to application fields, and can be divided into films, injection molding, coating, wire and cable and other uses.

The pace of diversification of supply entities continues to accelerate

Thanks to the rapid development of the coal-to-polyethylene industry, the coal-to-polyethylene production capacity has grown rapidly in the past 7 years, and the proportion of production capacity has risen from 2.

The geographical mismatch of supply and demand leads to obvious differences in the logistics model of the supply body

From the comparison of demand and supply capacity in sub-regions, the regions represented by Zhejiang, Guangdong, Henan, Jiangsu and Shandong are currently the most important polyethylene consumption places in my country.

The northwest region represented by Ningxia, Inner Mongolia, Shaanxi, and Xinjiang has become my country's most important production output area due to the rapid development of coal-to-olefins in recent years.

my country's petroleum and coal chemical companies are mainly concentrated in the northeast and northwest regions because of their production facilities, while the polyethylene consumption market is mainly concentrated in the coastal areas.

Steady rise in prices supports the confidence of market participants

my country's polyethylene price trend can basically be divided into three major stages, namely, wide fluctuations from 2010 to the first half of 2014, cliff-like declines from the second half of 2014 to the beginning of 2016, and slow fluctuations from the bottom of 2016 to the present.

Stable, continuous and considerable profitability encourages the determination to enter the supply of new entities

Benefiting from the collapse of international oil prices since the second half of 2014, and the trend of low and wide fluctuations in international oil prices from 2015 to 2017, the profitability of my country's oil-based PE manufacturers has been significantly improved since the second half of 2014.

Due to the long-term demand gap, coupled with stable, continuous and considerable profitability expectations, my country's polyethylene as a star variety in bulk commodities will continue to be widely sought after by new supply entities.

(Keyword: Polyethylene)