The global polyolefins market is set for continued rapid growth over the next 3 years

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This post was last edited by jordan569 on 2013-1-6 at 20:36. Driven by strong demand from emerging economies, the global plastic market is set to grow at an annual rate of over 5% by 2014, which is higher than the growth rate of global GDP. Sangeet Sharma, India market manager for ChemiCon’s Dubai branch in the United States, noted that China, Northeast Asia, and the Middle East are the key drivers behind the strong global growth in polyolefin demand. Producers are fairly optimistic about the North American market from 2011 to 2012, predicting that the growth rate of the polyethylene market in this region will be close to the GDP growth rate; in 2013, demand for polyethylene in this area is expected to increase at a rate of 4% to 5%. Polyethylene supply in North America is currently becoming tight, with plant operating rates exceeding 90%. This positive trend is set to continue throughout 2011, but it will not be as strong as it was in 2010. Xima Company states that from 2010 to 2015, global demand for polyethylene will grow at an annual rate of around 5%, and by 2015 the global demand for polyethylene is expected to reach approximately 90 million tons ； During the same period, demand for polypropylene is expected to grow at a rate of around 6% per year, with global demand reaching approximately 63 million tons by 2015. Shama said that on a global scale, Asia will be the region with the fastest growth in demand for polyethylene and polypropylene, as the region continues to advance its industrialization process. Meanwhile, polyolefin production capacity in the Middle East and Asia will continue to expand. The new production capacity for polyethylene and polypropylene in China is driven by the healthy growth in demand from the automotive industry, while the increase in production capacity in the Middle East is mainly fueled by the advantage of low-cost raw materials. Shama predicts that by 2016, the Middle East and China will account for one-third of the world’s polyethylene production capacity. Some analysts believe that the impact of the new production capacity will become apparent in 2011–2012, as some delayed projects and their raw material supply issues have been resolved. Shama believes that the growth rate of production capacity will exceed that of demand, which in turn will lead to a decrease in the operating rates of polyolefin plants worldwide. At that time, approximately 3.5 million tons per year of excess polyethylene production capacity worldwide will need to be absorbed. This excess capacity is very likely to be located in Europe, and possibly in North America as well. Industry experts say that the key driver for the global plastics industry in the future will remain the automotive sector, as there is a growing demand in this industry for lighter and more energy-efficient materials. Among them, demand in the Chinese market will continue to grow at a rapid pace. China’s position as the world’s largest automobile producer and largest automobile market is continually strengthening. Producers are also optimistic about the prospects of polystyrene and acrylonitrile-butadiene-styrene copolymer (ABS). Affected by the dual negative factors of overcapacity and rising raw material prices, the polystyrene and ABS markets have now fallen behind the development of the polyethylene and polypropylene markets. Chris Pappas, CEO of Styron Corporation, said that 2011 will be a good year for the styrene industry chain; the performance of this industry in 2010 was better than in previous years, although it still faces certain challenges. Demand for styrene-based products in the automotive, electrical appliances, and food packaging sectors is recovering. Aimai Company predicts that over the next 5 years, the demand for polystyrene in North America and Western Europe will grow at an annual rate of 1.5% to 1.7%, but the Asian market remains plagued by oversupply, so its prospects remain poor. Market experts say that the operating rate of polystyrene plants in Europe is currently around 90%, while that in the United States is about 85%. However, these rates are set to increase in 2011, whereas the operating rate in Asia will remain between 70% and 80%. For more content, please visit the China Chemical Industry News digital edition (http://ipaper.ccin.com.cn). Note $ # $ $