Southeast Asia Polyolefin Industry Explored in New In-Demand GlobalData Report Now Available at MarketPublishers.com30 Apr 2013 • by Natalie Aster
LONDON - China’s appetite for polyeolefins just keeps growing, and Thailand and Singapore are set to profit handsomely from their exports. Exports from Southeast Asian countries to China have increased threefold in the last decade. Trade agreements present within Asia are expected to promote further growth in the plastics business.
Polyolefins are the most consumed polymers in the world, with polyethylene and polypropylene being two of the most common types, used in packaging, construction and automotive sectors, among others. A large portion of polyolefins produced in Southeast Asia is exported to the Chinese market, which is the largest importer and consumer of polyolefins in the world. China’s demand for polyolefins is expected to grow from 31.45 MMtpa in 2011 to 41.13 MMtpa by 2016 at a CAGR of 5.5%, according to the report "The Southeast Asian Polyolefin Industry - Set to Emerge as a Key Market with Growing Demand and Capacity Additions" by GlobalData.
The Southeast Asian Polyolefin Industry - Set to Emerge as a Key Market with Growing Demand and Capacity Additions
Published: April, 2013
Price: US$ 3,396.00
The Association of Southeast Asian Nations (ASEAN) places neighboring countries in an ideal position to trade among one another, as the ASEAN Free Trade Agreement (AFTA) allows trade between member countries with zero import duty. Singapore and Thailand are members of ASEAN, and China has entered into a China-ASEAN Free Trade Agreement (CAFTA) with a corresponding zero import duty regime, allowing these countries to conduct more economical trade.
Thailand is the biggest exporter of polyolefins to China, and also boasts the largest consumption and production of polyethylene and polypropylene in the Southeast Asian polyolefin industry. Large natural gas reserves in the Gulf of Thailand provide abundant feedstock, and the location of polyolefin plants in Rayong in the eastern seaboard provides close proximity to sea routes for transportation.
Other Asian countries import their polymers too, giving Thailand and Singapore extra business. Indonesia is the second largest consumer of polyolefin resins in Southeast Asia, but depends on imports due to insufficient growth of domestic production capacity. Vietnam also lacks the production infrastructure to satisfy domestic demand for polyolefins, which has been growing continuously by more than 15% per annum over the last decade.
More information can be found in the report “The Southeast Asian Polyolefin Industry - Set to Emerge as a Key Market with Growing Demand and Capacity Additions” by GlobalData.