01 April, 2021
RALEIGH, North Carolina, Apr 1, 2021 - The HDPE price in China is expected to see consistent growth in the near future, according to Beroe Inc.
The absence of too many suppliers in the market and an added advantage of abundant resources make the market a viable one for China. Asia controls a significant share of 42 percent in the global HDPE market, out of which China has a massive share of 28-32 percent. China has a significant place in the HDPE market, and there would be repercussions globally should the Chinese market dynamics change in any way.
According to the HDPE market analysis, China's present HDPE supply capacity is estimated at 10.4 Million MT compared to 6.3 Million MT in 2018. There has been an addition of new capacity in the form of 4.1 Million MT. There is a further projection of growth by 3.6 Million MT in 2020-2021 that will significantly enhance the domestic supply for HDPE.
However, there is still the issue of Chinese dependency on considerable imports as well. A total of 8 Million MT imports in 2019 show that China will still have to depend on imports to meet its domestic demands in the high-density polyethylene market, especially with newer online capacities.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: https://www.beroeinc.com/beroe-live-ai/
There is an existing potential for market growth in China owing to the HDPE market share being mainly controlled by Asian markets. There has been a slow demand-growth in 2020 that may have its consequences on the Chinese market. But a detailed study of the HDPE market analysis shows that with no further plant additions beyond 2022, the gap in the capacity and demand may widen in the future. The imports from the Middle East presently constitute about 70 percent of the total imports into China. This HDPE market is mainly due to ongoing trade tensions and political disagreements with the U.S., showing a sharp decline in the imports from there in 2019. The situation is likely to continue in the same way for the time being.
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits, and reduced risk. Beroe has been providing these services for more than 15 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
LiVE Event: Category Management For Procurement Professionals