| Polyolefins have grown to the level of about 88-89
million tonnes globally in 2002. Both North America and Europe are
recovering from a dull 2001. However, Asia Pacific region continues
to grow mainly because of the insatiable appetite of China.
In fact, China is the third largest consumer of
Polyolefins after North America and Europe (EU region). Currently,
China accounts for almost 16 % or about 14.5 million tonnes of the
total Polyolefin consumption pegged at approximately 88-89 million
tonnes. This stupendous growth is not only due to China's manufacturing
strength, but also due to the increasing standard of living of the
population of 1.25 billion. It is estimated that more than 75% of
the polyolefins consumption is used internally, that is to meet
domestic requirement. The balance 25% is being used for direct as
well as indirect exports, particularly where Polyolefin products
are used for packaging, etc.
China's domestic per capita consumption of Polyolefins
has reached a level of almost 9 Kgs. compared to the World average
of about 15 Kgs. China has recorded almost 10.5% average growth
between 1992 and 2002 for Polyolefins- a truly remarkable achievement,
considering the Asian crisis of 1997-1998 that caused a downturn
in most of the Asian countries.
Most of the experts around the globe believe that
China's growth in Polyolefins from now until 2007 will be about
7%. However, there are two clear positive economic signals that
could enhance the growth beyond 7%. ## Firstly; China's entry into
WTO would definitely improve its share in global trade.
## Secondly, the prestigious 2008 Olympics in China would see an
increase in the domestic demand.
It would therefore not be surprising that China
would require about 1 million tonnes more in 2007, than the 20 millions
predicted by the industry experts.
| Polyolefin Consumption -2002 (MMT) |
|
Region
|
PE
|
PP
|
Polyolefins
|
% Share
|
|
Asia Pacific
|
16
|
12
|
28
|
32
|
|
China
|
8.4
|
6
|
14.4
|
16
|
|
World
|
54.5
|
34
|
88.5
|
100
|
|