Episode 965: Think Tank: China to add record-breaking chemicals capacity in 2023, global markets beware

This year, China will complete an unprecedented amount of petrochemical and fertilizer capacity, creating oversupply in some global markets and switching the country from net importer to an exporter of certain commodities.-          232m tonnes/year of chemical and fertilizer capacity due onstream 2023/4-          Chemicals demand growth will flatten or turn negative-          China GDP growth will stay low, driven by demographics-          China growth driven by massive stimulus, construction bubble bursting-          China switches from net importer to exporter of purified terephthalic acid (PTA)-          PP from 67% self-sufficient to 97% in 2022, may become net exporter-          Monoethylene glycol (MEG) moving closer to self-sufficiency -          In 2014 China announced self-sufficiency strategy for chemicals-          Pandemic delayed impact of new capacities-          US shale-related expansions target exports to China-          Could be capacity closures in other regions