China’s Petrochemical Expansion

China is already the world's largest producer of polyesters and is increasing its production even further. 70% of these polyesters go into the manufacture of textiles, which means that pricing and availability have a large impact on global markets. According to a new RaboResearch F&A report, ‘China’s Petrochemical Expansion,’ the global demand for rPET is expected to grow strongly, pushing efforts to increase recycling rates and to develop new technologies, such as chemical recycling, to support this ambition.

Report summary

“Projected new capacity in China has the potential of disrupting global markets for intermediates that are the building blocks for virgin PET,” says senior analyst Richard A. Freundlich. “The increase in capacity may further exacerbate the cost differential between virgin and rPET having significant implications on sustainability plans.”