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Polypropylene markets to grow about 4% annually
Additives for Polymers v.2002, n.3, Mar02
Polypropylene (PP) enjoyed a growth of more than 6% annually until
the year 2000 and its future growth is only expected to slow slightly,
according to Industrial Information Resources, Inc, of Houston,
TX. PP’s diversity in end uses has helped sustain its growth
through a very slow 2001 industrial spending year and estimates
indicate growth for the next two years will be approximately 4%
annually despite a rapidly slowing economy.
Capacity increases over the last two years, such as new unit additions
by both ExxonMobil and Dow, have brought nearly 1.2 billion pounds
per year of new capacity to the market, with some producers reducing
operating rates as capacity slowly crept past demand. Industrial
Information reports that additional capacity is scheduled to come
on-stream in the second quarter of 2002, when Phillips Petroleum
begins operations at its new 775 million pound per year unit at
its Bayway refinery in Linden, NJ. 2002 is likely to result in
lower profit margins for most PP producers, the report contin-
ues, but the material’s diversity and a good supply of polymer
grade propylene feedstocks will help it remain in a position of
growth.
A separate study, by Chemical Market Associates, Inc (CMAI), on
propylene supply also suggests that the supply of polymer and
chemical grade propylene feedstock will grow at an average of
4.2% per annum for the next 15 years.
CMAI has also recently published data on the current demand and
future growth for polystyrene. The consultancy estimated that
demand for polystyrene fell 2.5% globally in 200 1. That equates
to a global operating rate of just 75%, which CMAI claims is considerably
lower than in previous economic slumps. The fall follows a continued
imbalance between capacity and demand.
However, CMAI predicts a rise in demand for polystyrene in 2002,
but forecasts an equal increase in capacity, continuing the reduction
in operating rates.
Contact: Industrial Information Resources Inc, Houston, TX, USA;
tel: +I-713-783-5147; URL: www.industrialinfoxom Chemical Market
Associates, Inc, I1 757 Katy Freeway, Suite 750 Houston, TX 77079,
USA; tel: +I-281-531-4660; fax: +I-281-531-9966; URL: www.cmaiglobal.com
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