WHITE PAPER DOWNLOAD: China’s Petrochemical Paradox: Industry Expansion and the Fight for Survival

China’s Petrochemical Paradox: Industry Expansion and the Fight for Survival

China’s petrochemical industry has experienced significant growth over the past 20-30 years with huge growth in domestic capacity planned to meet domestic demand and manage import requirements. But the domestic petrochemicals industry now faces a paradox: persistent overcapacity and negative margins coexist with relentless expansion.

Despite the domestic economy reportedly meeting the 2024 GDP growth target of five percent, the petrochemical sector is grappling with weak demand growth, ongoing capacity additions, low industry operating rates and declining structural imbalances at a time of global headwinds. The significance of Chinese demand and the scale of its domestic capacity has far-reaching impacts for global petrochemicals industry.