China’s Petrochemicals Boom Escalating Fears of Global Glut

A wave of new Chinese petrochemical plants is raising fears of a deluge of exports that will put pressure on other producing nations that are already struggling with oversupply.

China has built seven massive petrochemical hubs over the last decade, surpassing the US as the biggest producer of ethylene and polyethylene, which are used to make plastics, rubber and fibers. Beijing’s aim was to increase self-sufficiency, but the jump in capacity is creating a global glut that could swell even further if more planned plants come online.