China is the world's largest polyolefins customer. China imported 6.2 million metric tons (13.7 billion pounds) of polyethylene and polypropylene in 2001 - and it was a slow year due to global economic conditions. China typically accounts for more than 30 percent of the globally traded polyolefins - and this percentage is increasing. China produced 6.3 million metric tons (13.9 billion pounds) of polyolefins in 2001, resulting in a total demand of 12.5 million metric tons (27.6 billion pounds). Total polyolefins demand has been growing at an average annual rate of about 12 percent per year for the past decade. While supply is increasing it will not be nearly enough to meet projected demand growth. If the current growth rate were to be maintained, the polyolefins deficit would be about 12 million metric tons (26.5 billion pounds) by 2010 - more than double the current import level. Yet, based on some preliminary work assessing the impact of China's membership in the World Trade Organization (WTO), the demand growth rate will likely increase. The importance of China in the polyolefins business is evident by looking at the impact on Southeast Asian prices whenever China changes its purchasing patterns. Whenever these changes occur it affects the domestic and export markets of essentially every country in the world. This is not expected to change. In fact, it will intensify as China increases its percentage of the globally traded polyolefins. This study is designed to help companies selling polyolefins into China (or those that wish to enter the market) to better understand and appreciate the market dynamics of the country and better position themselves for the future. Based on the amount of new global capacity planned, particularly in the Middle East, the future will be much more competitive. As a result, many companies currently selling to China, either directly or indirectly through third parties, will lose market share unless they can adapt to the future situation. The study includes the following:
- Country Overview
- Demand Analysis (by type, sector, process and province)
- Supply Analysis
- Purchasing and Distribution
- Supply, Demand and Trade Projections
- Domestic Pricing History
- Competitive cost analysis of countries exporting to China
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