Taipei (Platts)--17May2007

The growth of global demand for basic chemicals and plastics is expected
to remain high despite high energy costs, Gary Adams, president of Chemical
Market Associates, Inc. said Thursday. He was speaking at the Asia
Petrochemical Industry Conference in Taipei, Taiwan.

     Adams said that despite rising energy prices, China is expected to double
its production of basic chemicals, plastics and fiber intermediates for the
period 2006-2015. China's rapidly growing demand will outpace its rising
production, he added. In fact, China's import of basic chemicals, plastics and
fiber intermediates would grow to 10 million mt by 2015, according to Adams.
 
     To sustain the growth, most of China's investment will be focused on
local coal-based production so that it can be self-sufficient in
petrochemicals. China is increasingly looking at chemicals that can be made
from coal, Adams said.

     For instance, China's production of vinyl chloride monomer in 2006 was
estimated at slightly more than 10 million mt/year. This was expected to shoot
up to 16 million mt by 2010.

     APIC 2007 is being organized by the Petrochemical Industry Association of
Taiwan and will end on Friday. 

--Quintella Koh, quintella_koh@platts.com