Automotive plastics consumption to grow in China

20-Jan-06

China's GDP has been growing at 9.8% pa, supported by national industry output that has been advancing at 15% annually. China is the second largest foreign investment recipient after the United States in the world today. The burgeoning middle class continues to spend in the fastest-growing economy in the world. China's two-decade old automobiles industry continues to develop leading to rapid rise in consumption of automotive plastics. This decade has seen China's automotive plastics industry growing at 27.8% pa. Since 1990, China’s automotive plastics consumption has grown 24.7% annually and is forecast to grow by 15.4% annually to 1.414 million metric tons by 2009. In real terms, automotive plastics output was 219,300 metric tons in 2004, and is forecast to increase to 504,430 metric tons by the year 2009 Over 1,100 state-owned, local government owned, private and foreign-funded automotive plastics producers in 2004 consumed 261,070 metric tons of polymers, including 6,310 tons of polyethylene 11,190 tons of polyvinyl chloride, 60,170 tons of polypropylene, 3,570 tons of polystyrene, 4,760 tons of phenolic resins, 76,190 tons of polyurethane, 5,590 tons of acrylics, 7,140 tons of unsaturated polyester, 34,520 tons of acrylonitrile-butadiene-styrene, 14,290 tons of engineered plastics, and 36,430 tons of other automotive plastics. Most of China’s automotive plastics producers comprise of small companies with small cost ineffective set ups. The Chinese government is restructuring the industry, leading to alliances or mergers. Due to a shortfall in domestic production, China will continue to remain a large importer of automotive plastics. China’s imports of automotive plastics is estimated to rise from 482,400 metric tons in 2004, to 951,260 metric tons by the year 2009.