Chinese polyester market growth is expected to sit at just below three per cent in 2020, a marked decline from the strong growth seen between 2018 and 2019.
This dip in performance is mainly due to slashed growth for bottle-grade PET, according to Wood Mackenzie.
Salmon Lee, Wood Mackenzie Head of Polyesters, said: “It is the PET bottle segment that is dragging down the whole supply chain, with around 61 per cent of capacities expected to run, a victim of the aggressive additions in capacities over the past three years.”
“It’s worth noting that, despite a disappointed 2020, Chinese polyester growth will likely bounce back by the end of this year, setting the stage for a recovery in 2021.”
“If the Chinese economy continues to reel under the weight of slowing exports, and the Chinese yuan continues to weaken, purchasing power among the Chinese could see a set decrease. If this happening, consumption within the world’s second-largest economy will be impacted.”