05 July 2007 22:58 [Source: ICIS news]
HOUSTON (ICIS news)--US demand for fluoropolymers could increase to 5.7% annually through 2011 to $1.9bn (€1.4bn) due to increased use of the materials for electronics, an industry market research firm said on Thursday.
The growth rate is larger than the rate for 2001-2006, according to a study by the Freedonia Group.
Gains will be driven by improved market trends in such fluorocopolymer applications as wire, cable, motor vehicles and architectural coatings, Freedonia said.
However, value gains will be limited by heightened competition from low-cost foreign imports, especially commodity polytetrafluoroethylene (PTFE) resins from Russia and China.
Electrical and electronic products will be the largest and fastest growing market for fluoropolymers through 2011, accounting for 37% of total demand by value, said Freedonia.
Transportation equipment applications will benefit from increasing motor vehicle production, although cost-cutting measures by automotive producers will restrain demand for costly fluoropolymer resins, according to Freedonia.
“As emerging design trends increasingly require superior performance characteristics, fluoropolymers will continue to replace other materials in demanding applications that justify their generally higher costs,” said Freedonia.
($1 = €0.73)
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