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Can NDRC directives accelerate China’s focus on value-added polyethylene investments?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
China’s Directory of Guidance for Industrial Restructuring came into force on 1 January 2020. The guidance, which aims to enhance the development of China’s industrial sector, encourages investment in innovative products to meet domestic demand and replace imports. Metallocene polyethylene (mPE) and alpha-olefins are two of the petrochemical products specified in the directory. Demand for mPE is growing rapidly in China, driven by advances in packaging and agricultural film, as well as urbanisation and infrastructure construction. The guidance also encourages coordinated alpha-olefins investment.
Table of contents
- Guidance encourages investment in innovative petrochemical products
- Fast-growing demand and deficient domestic supply weakens Chinese convertors’ bargaining ability
- China mPE production is increasing – albeit slowly
- Alpha-olefins investment also encouraged to match mPE development
- Opportunities and challenges
- Conclusions
Tables and charts
This report includes the following images and tables:
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mLLDPE-LLDPE CFR China spread increaseChina mPE capacity increaseSinopec is using its own technology to produce mPE while PetroChina is using foreign technologyChina alpha-olefins capacity increase
What's included
This report contains:
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