China's Domestic Competition Intensifies, PE Import And Export Pattern Gradually Changes

Recently, PE (polyethylene) products have continued to move forward on the road of high-speed capacity expansion. Although PE imports will definitely increase significantly, with the gradual increase in domestic production capacity, the localization rate of PE has shown a trend of increasing year by year.

Recently, PE (polyethylene) products have continued to move forward on the road of high-speed capacity expansion. Although PE imports will definitely increase significantly, with the gradual increase in domestic production capacity, the localization rate of PE has shown a trend of increasing year by year.

According to statistics, as of 2023, China's domestic PE production capacity has reached 30.91 million tons/year, and the annual output is about 27.3 million tons; in 2024, the PE production capacity is expected to be 34.36 million tons/year, and the output is about 29 million tons.

As China's domestic production capacity continues to expand, compared with the slow-growing downstream consumer demand, the new supply has squeezed out the market for some low-end imported materials products. PE imports have shown a decreasing trend year by year.

From 2022 to 2023, domestic production capacity will continue to expand, and international PE imports will decrease compared with 2021. Domestic PE imports are expected to be 12.09 million tons in 2024, and domestic PE imports may continue to decrease in the future.

In terms of exports, due to the rapid growth of production capacity and output in recent years, China's domestic low-price competition has intensified, resulting in loss of profits. It is difficult for end consumers to digest such a large-scale supply increase in a short period of time. As a result, China's PE exports have shown a trend of increasing year by year since 2020.