An AMI report says Chinese plastics demand has stayed strong in 2004

Higher polymer prices have done little to restrain the demand growth rate in China this year, according to AMI. The UK research group expects the country’s thermoplastics market growth in 2004 to be close to the 9% achieved in 2003.

China’s reliance on imports of polymers means it has become integrated with international markets and follows global trends, said AMI. Material prices are being driven up by high international prices for raw materials, which has led to some pain for processors.

But this has had little effect on overall demand. Government measures to dampen China’s rapid economic growth may have some limited impact on polymer demand, said AMI, but in the first half of 2004 there was little sign of this. However, higher polymer prices are holding back other countries in South East Asia, said AMI. The more mature markets of South Korea, Taiwan and Singapore have seen plastics processing move into China, Vietnam and other lower cost locations.

AMI forecasts the total South East Asian market for thermoplastics will increase by over 6% in 2004, taking demand to nearly 50 million tonnes. Removing China from the estimate reduces the growth rate to 2.5%.