Strong growth in Chinese production
Production by China’s 8,981 plastics processors “with reasonable production scale” increased by 14.2% in the first half 2004 compared with the same period in 2003.
In value terms the increase was even larger at 25.1%, to RMB174bn (E16.3bn), according to figures presented by Liao Zhenpin, secretary general of the China Plastics Processing Industry Association (CPPIA) during K2004. He said the number of companies had also increased by 700 since 2003.
Plastic film was the largest sector, accounting for 1.75 million tonnes, followed by filaments and woven products at 940,000 tonnes.
Pipe and rods amounted to 920,000 tonnes and was the second fastest growing sector with a 23.1% increase after “artificial and synthetic leather” at 462,000 tonnes and 28.1% growth. Profile, film and sheet production rose by 19.5% to 783,000 tonnes.
The start-up of 12 new oriented film plants in 2004 brought the total number of BOPP plants to 18. National capacity of BOPP film has reached 1.76 million tonnes in 2004 and is forecast to reach more than 2 million in 2005. But annual demand is no more than 900,000 tonnes at present.
The situation is similar with the smaller BOPET market. The 200,000 tonnes of installed capacity in 2003 matched the demand forecast for 2005, but new lines set to open next year will bring overcapacity with 500,000 tonnes installed.
CPPIA said the overheated development of the domestic BOPET industry and “irrational investment” will affect healthy development and “discourage expected returns for new investors”.