Report Sees World Polyolefin Prices Rising Through
Houston, September 23 -- Chemical Market Associates, Inc. recently completed the 2005 World Polyolefins Analysis, a multi-client market study covering the world polyolefins markets.
The CMAI view of the global polyolefins industry is that growth in demand throughout the forecast period is expected to moderate from historical levels (in the developed economies), but still maintain an overall rate above that of GDP. Asia represents the fastest growing consumption
region for polyolefins during the next several years.
The profile for global polyolefins prices has changed somewhat from previous forecasts. A more sustained period of elevated prices is anticipated between 2005 and 2007; however, the actual height of the peak will be somewhat lower than originally anticipated as the influences of higher energy, a longer period of economic recovery from the down cycle and a more controlled introduction of excess material from the Middle East work to counterbalance
the market.
This does not mean that within the forecast period there won't be short-term shifts in market dynamics and prices due to inventory swings and unanticipated events, but it does indicate a baseline change in industry
profitability over the course of the next several years. These new elements
may alter the timing of re-investment decisions, thereby impacting
supply/demand balances both regionally and globally.
Demand for global thermoplastics is dominated by polyolefins (PE and PP), which represent over 60 percent of all commodity resins consumed on an annual basis. These
versatile materials are used in a variety of areas from trash bags to automotive parts, food packaging to carpet fibers.
