2021 PE Consumption Structure by Region
In 2021, due to the impact of climate factors such as rainstorms and typhoons in different regions, as well as the public health event, the demand for PE varieties showed different regional characteristics. In the first quarter of 2021, the processing atmosphere of the packaging industry in East China and South China was higher than that in the same period of previous years, which supported the demand for LLDPE because most of the early export orders were in the catch-up stage and many places advocated staying put during Spring Festival holiday. Typhoon and rainstorm weather in the second and third quarters, as well as policy adjustment in some areas, affected the East China coastal areas, Henan, Jiangxi and other places more obviously, and the manufacturing processing was blocked. Specifically:
In 2021, China’s PE consumption regions were still East China, North China and South China, and the consumption in the three regions will account for 70.4% of the total consumption volume. Compared with 2017, the proportion of PE consumption volume in East China will increase by 1.3% to 28.82% in 2021; that in South China will increase by 0.7% to 17.7%; that in North China will decrease by 2.1% to 23.88%; that in Southwest China will increase by 3.3% to 9.22%; and that in Central China will remain 9.61%, which was basically the same as that in 2017. Compared with 2017, the proportion of PE consumption in Northwest and Northeast China may decrease by 1% and 2.2% to 5% and 5.8% respectively.
In 2021, due to the impact of climate factors such as rainstorms and typhoons in different regions, as well as the public health event, the demand for PE varieties showed different regional characteristics. In the first quarter of 2021, the processing atmosphere of the packaging industry in East China and South China was higher than that in the same period of previous years, which supported the demand for LLDPE because most of the early export orders were in the catch-up stage and many places advocated staying put during Spring Festival holiday. Typhoon and rainstorm weather in the second and third quarters, as well as policy adjustment in some areas, affected the East China coastal areas, Henan, Jiangxi and other places more obviously, and the manufacturing processing was blocked. Specifically:
(1) Under the background of the public health event in 2020, the capacity of some products related to epidemic prevention materials in East China and South China expanded rapidly. The capacity expansion in 2021 stimulated local demand for PE, especially in packaging related industries. Although the industries related to epidemic prevention materials in North China also expanded their capacity, the industry structure adjustment in the early stage made the consumption growth in North China slower than that in other regions. Some small and micro-scale enterprises changed careers or stopped production, but the proportion of PE consumption in North China was relatively stable compared with last year.
(2) The proportion of PE consumption in Central China increased first and then decreased in recent five years. Due to the public health event in 2020, the manufacturing industry in Central China was blocked. The consumption base during 2020-2021 was lower than that in previous years, but the proportion of PE consumption in Central China remained the same as that in 2017.
(3) With the successive implementation of a series of regional coordinated development strategies, China’s regional economic spatial pattern has changed from unbalanced development to coordinated and balanced development. Some processing and manufacturing industries are transferred from the eastern region to the central and western regions. In particular, with the development of tourism industry, the PE consumption base in Southwest China, represented by Sichuan, Chongqing, Yunnan and Guizhou, is increasing, driving the proportion of PE consumption in Southwest China to increase compared with 2017.
(4) With the balanced development of the industry, the demand in Northeast China and Northwest China is increasing. However, subject to the local climate, population distribution and the development characteristics of local processing industry, the growth rate is slightly lower than that in other regions. In 2021, the regional proportion of PE consumption will be lower than that in 2017.
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