Southeast polyolefins demand growth could be negative again in 2021.
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Southeast Asian (SEA) polyethylene and polypropylene demand could fall again in 2021 after a negative year of growth in 2020.
This would be the result of the pandemic continuing to badly effect the region's developing countries.
The problems in SEA and the rest of the developing world could have been avoided. This a huge economic and moral failure.
Latest numbers from Our World in Data show that just 4.15 out of 100 people had been vaccinated in Vietnam as of 11 July with Indonesia at 18.09 and Thailand at 17.48.
This compared with 118.35 in the UK – meaning each person had received more than one shot.
Add weaker SEA to Chinese polyolefins demand along with greater Chinese supply and “Houston, we have a problem”.
A solution is exports from Asia to other regions given low pricing in SEA and China. Cheap Asia is a big money-saving opportunity for buyers outside Asia.
This is provided container space can be found and afforded.
We see the container crisis continuing for at least another six months. Asian markets will remain weak relative to the rest of the world for at least the rest of 2021.
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