17 September 2008 22:51 [Source: ICIS news]
BOSTON (ICIS news)--Global polyethylene (PE) markets are expected to see a quick recovery from the large increase in new capacity in the Middle East and China, a NOVA Chemicals executive said on Wednesday.
The optimistic view is based on a sharp recovery of global operating rates following a dip in 2009 and 2010 due to resilient demand for PE, said NOVA’s John Hotz, vice president, polyethylene.
NOVA’s view is that while global PE capacity will grow by 42bn lb/year in the 2008-2012 period, demand growth of 45bn lb by 2012 will exceed supply, Hotz said at the Chemical Purchasing Summit organised by ICIS and Purchasing magazine.
PE growth globally is predicted to average just over 5%/year, said Hotz.
NOVA’s optimism is based steady growth in global PE demand despite a slowdown in world economies. One of the reasons for this resilient growth is that PE is used in packaging applications rather than capital goods. Over the last 16 years, PE has grown steadily at 5%/year despite global economic slowdowns.
Hotz said he also expects growth in the developing nations to continue. He showed the per capita consumption of PE in the BRIC (?xml:namespace>
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