China’s manufacturing PMI falls in October to 49.2 from 50.1, according to the latest data from the National Bureau of Statistics (NBS).
The reading was lower than the expected 50.0 and attributed mainly to the negative impact of zero-COVID policies.
The new data fuels fears that the global economy will enter a recession next year.
Moreover, the lower PMI reinforces the view that the European polymer industry will continue to struggle under the weight of competitive imports.
The recent slowdown in China has been a major reason for the slump in margins in some markets. This was especially evident in the acrylonitrile butadiene styrene (ABS) market.
Faced with lower demand, Asian companies have been focusing on the European market. The lower offers from the region pushed down prices and margins for domestic suppliers.
European polymer suppliers will probably continue to struggle next year. A loss of competitiveness due to firm energy costs and the slowdown in China should support imports from the region.