2016 PET bottle chip in Asia: in need of precautions against adversity
¡ª¡ªCharles Guo, Senior Analyst of CCFGroup

Guo divided his presentation into four parts: 

Firstly, comparison between the world and Asia. Capacity of PET bottle chip in the world is over 27 million tons per annual at present, while capacity in Asia occupies over half of the world total, but per capita consumption is still low in Asia. The proportions of PET bottle chip capacity in South Asia and Middle East are increasing year by year, while growth of capacity slows down in Northeast Asia but capacity is still supposed to grow in China in the future. In Europe and U.S., old capacities have been eliminated in recent years while new capacities are limited. In Asia, Africa and Latin America, new capacities are increasing　rapidly with enlarging proportions.　 
　 
Secondly, trade flow change. In 2015, except for Japan with large imports, Asia continued to be net exporter of PET bottle chip. India witnessed fast growth of exports, while exports of China and South Korea declined. 

Thirdly, cost and profit. The monsoon in Southeast and South Asia in Q2 and Q3 sparked off muted demand, falling prices and squeezed processing margins. In China, demand was robust in summer with tight supply, firm prices and favorable cash flow. 

Lastly, future trend. New capacities in next 3 years are mainly in China mainland where supply-demand will be under large pressure. Annual growth of market demand is below 5%.