China Continues Domination of Global Polyester Markets – With Varying Outcomes

As in recent years, events and investment in China continue to dominate. But individual sectors are following different paths and enjoying (or otherwise) mixed fortunes.

Polyester Filament
During the past five years, the annual rate of growth in the global production of polyester filament has been 8.6%, well above the all fibre average of 4.9% per annum.  In 2015, the global growth rate slowed to 4.8% with China slowing to 6.5%.

In 2016, production growth of polyester filament in China is expected to have slowed further to 6.1% due to weakness in Chinese and global economies. Worldwide polyester filament production grew 4.9%. However, polyester filament demand is expected to improve (5.7%) in the remainder of the forecast period due to continuing trends to filament processing.

Growth rates in polyester filament production are not forecast to be universally high, however. For example, it is expected that the world polyester filament market will continue to be dominated by mainland China, where production has grown at an average rate of 10.0% per annum during the past five years. However in the US, production of polyester BCF has increased because not only is the carpet market more resistant to import penetration than other sectors, but polyester BCF is replacing both polyester staple and nylon as well as polypropylene and nylon BCF. But in most regions outside Asia, output of filament has been slowing.

Polyester Staple
The global situation with regard to polyester staple is similar to that of filament, with China dominating and squeezing output in the western regions of the Americas and West Europe, as well as the local Northeast Asia region. However, output in the Middle East & Africa and South & Southeast Asia is forecast to continue growing.

The global growth in production of polyester staple during the past five years has been a more modest than for filament, being 2.9% per annum, below the all fibre average of 4.9% per annum. However, a slightly higher rate of growth closer to the all fibre average, is forecast through to 2025, the result mainly of a shortage of cotton and manmade cellulosic fibres. It should be noted that demand for polyester staple is expected to remain strong not only in the textile sector but also in the fast expanding nonwoven market.

PET Packaging Resin
After a quiet period for new capacity during 2015 and 2016, new capacity expansions, mainly focused on China, are coming in 2017. However, it is likely some of the 2017 start-up dates (shown in the following table) may be delayed, depending on market condition.

World New PET Resin Plants 2016-2017
(1,000 Metric Tons)





China Resources Packaging Material

Zhuhai, China


Oct 2016

Jiangsu Sanfangxiang

Jiangyin, China


Q1 2017

Zhejiang Wankai New Material

Haining, China


Q1 2017

Hainan Yisheng Petrochemical

Yangpu EDZ, China


Q2 2017

M&G Group

Corpus Christi, US

Q3 2017

Hosaf Fibres

Jacobs, South Africa

Q3 2017

Jiangyin Chengsheng (Chengao)

Jiangyin, China


Sichuan Shengda Chemical

Nanchong, China




Existing overcapacity has also led to industry restructuring and plant closures over the past year or two. Looking to 2017, renewed capacity expansions have many market participants taking a skeptical view for 2017 PET business, particularly in China, due to overcapacity in a market with slowing growth and limited export opportunities. Most see it as inevitable that further small and medium sized plants will be shut permanently in the near term.

Tecnon OrbiChem’s latest analysis of global polyester fibre, resin and film markets (The Polyester S/Db-CHEM ) takes a comprehensive and in-depth looks at capacity, production, consumption and trade of polyester fibre and PET packaging resin in the period to 2025.

S/Db-CHEM and World Analysis
Tecnon OrbiChem’s S/Db-CHEM is a truly comprehensive service, containing all the information you need on Polyester – Supply/Demand data, Trade flows, Consumption trends, Capacity listings and Historical prices.

  • Production, Consumption and Trade data are based on an analysis of historical data and forecasts out to 2025.
  • Historical trade flows are presented as country-to-country trade grids.
  • Capacity listings on a plant-by-plant basis give producer, owner and feedstock information.
  • Historical prices allow for construction of tables, charts and margins.

For more information please click on the title

Chemical Business Focus
The Chemical Business Focus provides a monthly market overview and analysis of the key factors influencing the market.

The Chemical Business Focus service comprises the following:

  • Monthly Consultancy Report: Expert commentary, price monitors, trade tables and full colour charts.
  • Supplementary Charts and Tables: Accessed directly on our website via hyperlinks in the report.
  • Historical Prices: 10 years available to download as Excel files from our website.
  • Plant & Project Reviews: Quarterly updates for key products.

Subscription includes email delivery and internet access for 5 users. Extra users can be added for UK£250 or 50% of subscription cost for unlimited users.

Click here to receive a sample for Polyester & Intermediates and PET Packaging Resin Chemical Business

Roger Lee
Managing Director
Phone: +44 207 924 3955

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s