China has vowed to ban imports of plastic waste by the end of this year — which could increase demand for virgin plastics.
Last year, China took in 7.3 million tons of plastic garbage — more than any other country in the world. But as part of China’s effort to curb pollution, it has opted to stop accepting waste imports.
According to a report in Reuters, the move will decrease the amount of recycled plastic on the market, which will drive up demand for new plastics. In particular, IHS Markit predicts that demand for polyethylene (PE) will grow by 6.6 percent between this year and 2018. Overall, Asia’s demand for plastic is expected to grow by 5.5 percent.
PE is used in a wide variety of products — from plastic wraps to pipes, packaging, plastic bags and more. China imports much of its PE from petrochemical producers in the Middle East, Singapore, Thailand and South Korea.
But with production capacity for PE expanding in the U.S., many American manufacturers could also look to elbow their way into the expanding import market in China. In 2016, China, Canada and Mexico were already the destination for nearly half of all PE exports from the US.
Rising medical tourism could also play a role in increasing the demand for PE in the region because it is used in many medical devices and products including syringe plungers and tubes.
All told, Asia’s demand for PE this year will total 41.5 million tons, two-thirds of which go to China.
