China's Petrochemical Surge: Global Oversupply Concerns

Chinas petrochemical production surge poses global oversupply concerns. With a projected 18% increase in polyethylene output this year, Chinas growing domestic production is expected to reduce imports by 13%, impacting other producers worldwide. This shift, coupled with Chinas role as the worlds largest producer of ethylene and polyethylene, is creating a challenging market for other countries. Looking ahead, Chinas polyethylene capacity is projected to increase by another 16% by 2026, potentially worsening a structural imbalance due to overproduction. This trend mirrors what happened with solar power and electric vehicles in China, highlighting how quickly a market can tip into oversupply when production grows rapidly.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.