His report is divided into three parts:

First, Mr. Xu stated that the global capacity of PET bottle chip continues to grow, reaching 43 million tons by 2025, while the demand will be 28.5 million tons, showing a pattern of oversupply. China is the absolute global supply hub, accounting for a staggering 47% of the total capacity. Its massive excess capacity is mainly absorbed through exports to global markets.

Second, the local capacity of PET bottle chip in the EU cannot meet its domestic demand, making it a market that has to rely on imports. The import volume is expected to reach 1.24 million tons by 2025. Although its import sources are diversified, neighboring countries enjoying zero tariffs and major Asian producers are its primary suppliers.

Finally, Mr. Xu pointed out that the EU has significantly boosted the demand for recycled PET (rPET) and the development of recycling systems through mandatory regulations such as the SUP Directive and the Deposit Return Scheme (DRS). Currently, Europe already has a considerable scale of rPET capacity. However, the price of recycled materials is significantly higher than that of virgin materials, and its effective supply still faces challenges related to costs and compliance.