Industry News
-
PV Industry: Lightweighting and Weather Resistance Drive Material Upgrades
Currently, the photovoltaic (PV) industry is in a structural adjustment phase driven by overcapacity, with accelerating industry consolidation. However, long-term demand remains optimistic. Going forward, technological innovation and cost control will continue to drive the expansion of diversified application scenarios. First-generation EVA encapsulant films have long dominated the market due to their mature manufacturing processes and low costs. Nevertheless, their limitations in weather resistance and resistance to potential-induced degradation (PID) have spurred the industry to pursue superior alternative solutions. POE encapsulation materials, boasting excellent water vapor barrier properties and high electrical resistivity, have become the material of choice for high-efficiency tec... -
Brazilian premium‑grade rPET flake demand plunges as supply chains shift
SÃO PAULO (ICIS)–Brazilian demand for premium‑grade recycled polyethylene terephthalate (rPET) flakes is set to continue weakening as the competitiveness of virgin material strengthens and supply‑chain dynamics shift. Premium flake demand has slumped versus virgin Pellet makers are cutting external flake buying Quality-premium spreads have collapsed Significant capacity has been built for non‑pellet‑verticalized premium‑grade rPET flake lines in recent years. That capacity was added primarily to serve premium rPET applications, especially food‑grade pellets. Recyclers equipped to produce flakes with polyvinyl chloride (PVC) contamination below 50 ppm – a key benchmark for premium quality – and similarly low levels of other contaminants are now struggling to place material. DEMAND PATT... -
Vioneo Plans to Build a Methanol-to-Polyolefins Plant in China
On January 16, European chemical startup Vioneo announced its decision to abandon the construction of a 300,000-ton-per-year green methanol-to-polyolefins plant in Europe and instead invest in a similar project in China. Vioneo stated that “by being able to source green methanol locally, it helps formulate favorable pricing schemes for customers while improving supply chain efficiency, reducing CO2 emissions, and accelerating product launch timelines.” To this end, to establish a more efficient production facility in China will serve as its first commercial-scale green methanol-based polyolefin production plant. Previously, Vioneo had planned to build its first commercial-scale plant in Antwerp, Belgium, with an investment of approximately 1.5 billion euros. The facility wou... -
PP/PE Industry Capacity Pattern Reshaped: Green Transition and Project Upgrade as Core Themes
China’s PP/PE (polypropylene, polyethylene) industry is undergoing a capacity reshuffle, with key developments including the commissioning of BASF’s Zhanjiang polyethylene plant and progress on PetroChina Dalian Petrochemical’s new polyolefin projects driving the sector toward larger-scale, high-end production. BASF (Guangdong)’s 500,000-ton/year polyethylene plant, contracted by Huanqiu Contracting & Engineering Corporation, has successfully started operations and produced qualified products. The project, a key Sino-German cooperation initiative witnessed by both countries’ premiers, is BASF’s largest overseas investment to date. Located in Zhanjiang’s Donghai Island Petrochemical Industrial Park, the plant adheres to global construction st... -
PVC Industry’s Expansion Cycle Ends, 2026 Supply-Demand to Improve Marginally
China’s polyvinyl chloride (PVC) industry has concluded its nearly eight-year capacity expansion cycle, with no new capacity plans for 2026, entering a structural adjustment phase. Coupled with overseas high-cost capacity withdrawal and export support, supply-demand dynamics are expected to improve marginally, verified by authoritative institutions. Supply-side data shows steady growth in domestic PVC capacity and output from 2018 to 2025. 2025 saw 2.2 million tons of new capacity added, with ethylene-based PVC proportion rising to 28%. Only minimal new capacity is pending globally in 2026, marking the end of expansion. The 2025 PVC market correction led to industry-wide losses, with acetylene-based PVC hitting a historic low. Despite a year-end rebound, prices remain at the bot... -
How significant is the cancellation of export tax rebates for the PVC market?
On January 9, the Ministry of Finance and the State Taxation Administration jointly issued the Announcement on Adjusting the Export Tax Rebate Policy for Photovoltaic and Other Products. The product list explicitly includes PVC powder, unplasticized PVC, and plasticized PVC in the scope of adjustment. The core impact clause concerns PVC exports: starting from April 1, 2026, the value-added tax (VAT) export tax rebate for PVC powder will be canceled. At present, the export tax rebate rate for this category stands at 13%. The far-reaching impact of this policy on the PVC market has attracted widespread attention from the industry and the capital market. Li Min, an analyst at Zhuochuang Information, stated that this policy will directly increase export cost... -
Europe’s Chemicals Sector: Potential Shift from Net Exporter to Net Importer
Market insiders note that as Europe’s market influence weakens, global chemical trade flows are tilting toward emerging Asian markets, with Asia (especially the Middle East) solidifying its status as a top chemical export hub. This trend could drive Europe to switch from a net exporter to a net importer of chemicals in the long run. Europe’s chemical market is in a sustained downturn. Stefan Schnabel of Germany’s Helm AG points out that Europe’s shrinking income-generating workforce and outflow of consumer spending have weakened local demand, benefiting surplus-producing regions like the Middle East and East Asia. Udo Lange of Denmark’s Stolt-Nielsen adds that Europe’s chemical industry is seeing capital outflow, domestic plant closures, and minimal new local investments—with short-term... -
Focus on Hainan’s Island-wide Independent Customs Operation! Zero Tariffs on 6,600 Tariff Lines and 15% Income Tax Preference: How Can Plastics and Chemical Enterprises Seize Policy Dividends?
On December 18, 2025, Hainan officially implemented its customs closure, with a series of supporting documents, including the “Notice on Taxation Policies for Goods Entering and Exiting the ‘First Line’ and ‘Second Line’ in the Hainan Free Trade Port and Their Circulation Within the Island,” simultaneously taking effect. These documents clarified core rules such as the prohibited and restricted import/export lists and the catalog of taxed imported goods. This significant measure has drawn widespread attention, with the distinction between the concepts of “border closure” and “island sealing” becoming the focal point for the public. Clarifying the differences between the two is key to understanding the essence of the policy. The... -
Profits From Oil-Based Polyethylene Are Expected To Grow In 2025, Boosting Production Enthusiasm.
In 2025, due to the continuous decline in international oil prices, the competitive landscape of the polyethylene market has undergone a fundamental transformation. Shift in Competitive Focus: Industry competition has shifted from a simple game of demand to a “battle of production technology routes” driven by costs. Rise of the Oil-Based Route: Leveraging their sharply increased cost advantage, oil-based polyethylene enterprises have seen significant profit growth (theoretical profit reached 422 RMB/ton from January to November 2025, a year-on-year increase of over 300%) and reclaimed dominant market pricing power from coal chemical and light hydrocarbon cracking routes. Pressure on Other Routes:Coal-Based Polyethylene: Due to its cost dependence on relatively stabl... -
Plastic Products Exports Decline Polyolefins Remain Weak
In October 2025, China’s foreign trade import and export growth slowed significantly. Affected by multiple factors including falling international oil prices and U.S. tariff policies, the export growth of plastic products remained sluggish, while the polyolefin market continued to face an oversupply situation with prices lingering in a low-range fluctuation. Customs data shows that China’s total import and export value in October 2025 reached 520.63 billion US dollars, a month-on-month decrease of 8.1% and a slight year-on-year drop of 0.3%. Among this, exports stood at 305.35 billion US dollars, down 1.1% year-on-year. For specific products, the export value of plastic products in October was 55.04 billion yuan, a sharp year-on-year decline of 9.5%. From January to ... -
Supply-Demand Imbalance Coupled With The Off-Season Effect, The PVC Market Is In Weak Oscillation And Grinding At The Bottom.
Currently, the PVC market is in a weak oscillating pattern, primarily due to the unresolved supply-demand imbalance. Core Supply and Inventory Situation The momentum of industrial production resumption has exceeded the impact of maintenance, with the operating rate of PVC powder rising to 80.55%. New production capacity in 2025 is being released concentratedly, with 2.2 million tons already put into production and 500,000 tons remaining to be released subsequently, resulting in loose supply. Social inventory in East and South China has increased to 544,100 tons, with slow inventory digestion. High inventory levels will persist throughout the fourth quarter. Price and Cost Performance Both futures and spot markets have weakened simultaneously. The closing price of the main PVC futures... -
Continuous Capacity Expansion: Analysis on Regional Changes in China’s Polyethylene Consumption
In 2025, China’s polyethylene (PE) capacity will maintain steady growth, reshaping the regional supply pattern significantly. Regionally, capacity will be concentrated in the Northwest, South China, and North China, with South China expected to surpass North China as the second-largest capacity hub. A geographical mismatch between supply and demand is evident: the Northwest and Northeast, as net export regions, have limited local consumption and obvious supply surpluses. Meanwhile, traditional major consumption areas including East, South, and North China still face demand gaps despite concentrated new capacity additions. Consumption in Central and Southwest China is rising due to regional policies and industrial transfers from the East, but their heavy reliance on resource alloca...