Insight
Polyester markets reeling under China’s “double controls”
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Report summary
Last month, China imposed restrictions on electricity supply to meet carbon emissions reduction targets, part of the country’s “dual controls” on total energy consumption, and energy intensity. Each of the country’s provinces has been placed under categories, specifying how much they have already exhausted the year’s power supply allocated to them within the first three quarters of 2021. In order to keep within the limits, many industries have come under pressure to scale back on operations as power cuts become common. Focusing on the polyester chain, operating rates of bottle-grade PET and polyester fibre plants have fallen; this could amplify going into October and beyond.
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