China bolsters olefins output on strong demand

China's olefins production registered strong gains in the first 5 months of this year on strong demand for downstream derivatives such as polyethylene. Production will likely be boosted further as China recently banned polyethylene imports from South Korea.


BEIJING�China's olefins production registered strong gains in the first 5 months of this year on strong demand for downstream derivatives such as polyethylene. Production will likely be boosted further as China recently banned polyethylene imports from South Korea.

In the first 5 months of 2000, China's ethylene production rose 11.4% vs. the same period the previous year, reaching 1.98 million tonnes. Output in May was up 7.02% year-to- year, at 368,800 tonnes.

China plans to produce 4.45 million tonnes of ethylene this year, up 10.8% from 1999 production.

Polypropylene output in the January-May period reached 1.73 million tonnes, up 23.9% vs. 1999, while May production rose was up 14.4% to 323,400 tonnes.

Meanwhile, China also produced 244,800 tonnes of butadiene in January-May, an increase of 13.49%, with May output up 0.2% to 42,600 tonnes.

Olefins production will further expand during the rest of the year due in part to China's ban on polyethylene imports from South Korea. China early this month banned polyethylene imports from South Korea because that country May 31 decided to slap a 315% tariff on imports of garlic.

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