Outlook good for Chinese LDPE

Despite a production slowdown associated with a plant upgrade in the first half of the year, Guanwei Recycling Corp. reported on September 13th that production and sales of recycled LDPE are on pace to exceed 42,000 tons in 2010. If accurate, this volume would represent a nearly 35 percentage-point increase over the 31,149 tons of recycled LDPE manufactured and sold by Guanwei in 2009.

The Fuqing City company, which is the largest manufacturer and seller of recycled LDPE in China, attributed the projected year-over-year gains to secure supplies of material (sourced primarily from European markets) and robust demand for LDPE in the Chinese manufacturing sector.