Plastic Production in China – No longer the Future Driver for Growth?
The global plastics industry needs to challenge many of its growth assumptions. There has been a long-held assessment that China’s plastic production will be the future engine of advance material usage, and many resin plants have been built based on this belief. But in 2021 China was bottom of the polymer growth charts (as the graphic indicates) – and the situation may not be that different in 2022.
Plastics in China: A reduced share of World Polymer Growth in 2021 | Global Plastics Industry Seminar Report 2022
© BPI Publishing International Ltd
It is possible that the next few years will see Chinese plastics production continue to be disappointing, while Europe and the United States achieve unexpectedly strong results because of supply chain simplifications and encroaching protectionism. Certainly the establishment of the USMCA and the subsequent Inflation Reduction Act will be a driver to relocate manufacturing activities to the United States. In the European market we see the same supply chain simplifications taking hold and encouraged reshoring, but also restrictions on raw materials and finished products coming from deep sea markets on environmental grounds.
Other areas of the world benefitting from the decreased importance of the Chinese plastics market will be the ASEAN region, especially Vietnam and Thailand along with India.
This all promises to be herald a changed world market, which we will discuss in detail in the Global Plastics Industry Seminar in 2023. We hope to see you there.