23 December 1999 23:16 [Source: ICIS news]
HOUSTON (CNI)--US demand for acrylic resins will grow annually at a rate of 3.7% to create a market worth $2.3bn (Euro2.27bn) by 2003, but those figures represent slower growth than the 4.9% rate in the last ten years, the Freedonia Group said Thursday.
In its latest report on acrylic resins, the Cleveland, Ohio-based consulting group predicts use of acrylics in coatings, adhesives, and paper and textile finishes will continue to drive growth due to their compatibility with waterborne, high solids and radiation curable products.
Because those products already have replaced many of the traditional formulations based on chemical solvents, however, Freedonia said growth will slow when compared with the last decade.
Between 1989 and last year, demand for acrylic resins in the US grew from 821 687 tonne to 1.3m tonne, Freedonia said. The analysts predict those figures will increase to 1.5m tonne by 2003.
Among the different acrylic resins categories, paints and coating will lead demand with 499 092 tonne needed in 2003 and annual increases of 3.5%, comprising 33% of the total. Plastics will enjoy the highest rate of annual growth with 5.2% but that will remain below the 7.1% growth rate of the last decade.
Within the paints and coatings sector, Freedonia predicts demand in industrial and specialty coatings will be greatest because reformulation has lagged due to higher requirements for performance.
Freedonia also expects US exports of acrylic monomers will slow as foreign capacity additions come onstream, particularly in the Asia-Pacific region.
The analysts said: "Imports to the US are expected to outpace gains in production, particularly for methyl methacrylate manufactured in Europe."
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