Asian polyolefin market is in crisis

Affected by factors such as delayed production of new production capacity and the implementation of a large-scale economic stimulus plan by the Chinese government, the most difficult situation in the global polyolefin market is not expected to emerge in 2009, but this effect cannot be lost. Market participants predicted last week that the impact of a large number of new capacity production on the polyolefin market may be reflected in 2010.
The main reason for the lack of substantial increase in supply in 2009 was that new polyolefin installations in China and the Middle East failed to start production on schedule. Analysts believe that an important factor constraining the smooth start-up of these new installations is the lack of senior technicians.
The biggest desire of the current market is that these new installations can still be put into operation in 2010, which will give the market further opportunities to respite. Demand from the Chinese market will slow down because the government is cutting fiscal stimulus. According to the "China Economic Quarterly," the Chinese government is currently facing a very difficult task, on the one hand to maintain the prosperity of the construction market, on the other hand to prevent real estate prices from rising sharply.
According to statistics from Shanghai Commercial Information Service Company CBI, in 2010, China's 3.24 million tons/year of new PE and PP production capacity will be put into operation one after another. Such as Tianjin Petrochemical 300,000 tons/year HDPE, 300,000 tons/year LLDPE, 450,000 tons/year PP, Zhenhai ethylene 200,000 tons/year HDPE, 250,000 tons/year LLDPE, 300,000 tons/year PP, Baotou Shenhua Group 200,000 tons/year HDPE, 300,000 tons/year PP plant, Dagang Petrochemical 100,000 tons/year PP, Guangxi Petrochemical 200,000 tons/year PP, Luoyang Petrochemical 140,000 tons/year PP and Ningxia Shenhua 500,000 tons/year PP The device will be put into production.
New polyolefin production from other parts of Asia is also very large. For example, 800,000 tons/year of PE in Sharq in the Middle East and 800,000 tons/year of PE in Qato/Q-Chem, Qatar, will be put into operation in the first quarter of 2010, with 540,000 tons/year of PE and 800,000 tons from Abu Dhabi Boro Petrochemical Company. Ton/year PP plant will be put into production in mid-2010; Thai PTT company 300,000 tons/year LDPE, Thailand Bangkok PE company 400,000 tons/year LLDPE and 250,000 tons/year HDPE plant will be put into production in 2010, Thailand SCG Dow The chemical company's 300,000-ton/year HDPE unit and Thailand Polypropylene's 400,000-ton/year PP plant will be put into operation in the second and third quarters of next year; the Indian oil company's 300,000 tons/year HDPE/LLDPE unit, 300,000 tons/year The HDPE unit and the 600,000-ton/year PP unit will be put into operation in the first half of next year.

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