Global polyester demand expanded 4% in H1 - consultant

17 November 2009 15:47  [Source: ICIS news]

MUMBAI (ICIS news)--Global polyester demand grew by 4% in the first half of 2009, buoyed by economic stimulus packages, said an industry consultant on Tuesday.

After falling for the first time in its history in 2008, demand was expected to rise to 46m tonnes in 2009 from 45m tonnes in 2008, said Y J Kim, managing director of PCI Xylenes and Polyesters Asia, at the Indian Petrochem 2009 conference.

However, polyester demand growth projection for the period 2010 to 2012 was still below the historical trend growth at 5.7%, versus 8% for 2005 to 2007, Kim added.

China, the leading producer in Asia, was expected to produce 21.8m tonnes this year, up 7% from the previous year. China’s production growth was likely to be 7% per year for the next three years, Kim said.

He said that the country’s second 10-Year West Development Plan would create another boom for polyester. This would fuel new polyester demand growth in the long term, he said.

Kim expected global demand for purified terephthalic acid (PTA), a key raw material for polyester, to reach 39.3m tonnes in 2009 as against production of 40m tonnes. “The industry needs to build up inventory,” he said.

While PTA margins have been good this year, they were likely to come under pressure as Asia would have nearly 6m tonnes of surplus capacity once new plants start up, he said.

The Indian Petrochem 2009 conference, being held in Mumbai, ends on Tuesday.

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By: Malini Hariharan
+65 6780 4359

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