Polyethylene, the world's most widely used plastic, is primarily used to make films in packaging and plastic bags.

The Platts Shale to Polyethylene - Global outlook to 2023 report says Chinese technology is set to match and even outdo the US shale gas revolution in the petrochemical market, with China adding 14 million metric tonnes of additional polyethylene production capacity between 2014 and 2021.

"We hear a lot of talk about how shale gas is a 'game changer' in the petrochemical industry. And it certainly is," Platts petrochemical analysis editorial director Jim Foster said.

"But coal-to-olefins has the potential to have an even greater impact than shale gas, if China moves forward as planned."

The report claims new Asian polyethylene capacity, most of it from China, is set to hit global markets ahead of the new production planned for the US, with the largest capacity gains not expected in the US until between 2017 and 2020.

"In 2015 and 2016 alone, Asian polyethylene capacity could climb more than seven million metric tonnes," Foster said.

According to the report, the surge in Asian material will likely increase global polyethylene surpluses by more than 50% between 2013 and 2015.