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Time: 2017-02-17

At the FlexPO conference in Shanghai on October 22-24, professionals gathered to discuss China

Polyolefin market

Trends. Qi min added that the macroeconomic environment for PP and PE demand. "In the past, demand growth was typically 15-20 percent, and now it's below 20 percent," she said. It's a big challenge." Nearly half of China's PE imports and a third of its PP imports will come from the Middle East, she added.

As for domestic production, capacity is growing fast and more advanced, and investors are diversifying. China already has coal-to-olefin projects, mostly in northern and western China. It used to be just sinopec and petrochina, she said, but now it is "" private and large coal and power companies abroad and in Taiwan."

The company

We're also getting into the industry. ""

'the supply of polyolefin will increase substantially in the next few years,' he suggested. In coal-to-olefin plants, most ethylene and propylene are produced

product

Will be processed into PE and PP. Therefore, the development of coal-to-olefin industry will greatly accelerate the increase of polyolefin supply in China. Going forward, she added

The raw material

The structure will change dramatically. In the next few years, 80% of new PE capacity and 64% of new PP capacity will come from coal-to-olefin projects.

In recent years, China's polyolefin market has shifted from "" overall shortage" "to" "structural oversupply and structural shortage," "she said. She added that for a long time, Chinese polyolefin producers chose to produce generic grades of polyolefin to meet most of the market demand. But with overcapacity, Chinese companies are focusing more on premium and specialty products to compete with foreign companies, she said.

China's pollution problems are also affecting the olefin industry. Chen said the cost advantage of coal-to-alkenes is facing challenges because of pollution concerns and high costs. She added that there was already talk of a pollution tax, which could limit coal-to-alkene production. Yu ting, of ICIS, said companies should pay more attention to environmental issues as coal-to-alkenes cause pollution. We should find a solution."

Gao liping, senior consultant of China national chemical industry information center, talked about the growth of polyolefin demand in China, especially PP and PE. She said that since 2002, China's demand for PP imports, as well as demand for and consumption of naphtha for olefins, has steadily increased.

Qi min, director of China ICIS, said that although 70 per cent of China's oil is produced from naphtha, across Asia naphtha to olefins has been shut down or switched to coal because of high prices. Chen ying, senior project manager of TZMI China, added that the ethylene cost based on naphtha ****. On the other hand, demand for gas-based ethylene is growing and slightly outstripping supply. "The significant cost advantage of natural gas based ethylene is the main driver of demand growth," she said.