05 April 2012 16:24 [Source: ICIS news]
ORLANDO, Florida (ICIS)--Braskem America is bullish on polypropylene (PP) growth in the US despite high costs and feedstock volatility, in part because of the wide variety of uses for the resin, a company official said.
While the days of processors choosing PP because of a price benefit are probably over, demand for the material is still growing because it is the best resin for certain applications, said Mark Mendelson, marketing portfolio director for Braskem America.
"PP will be used where PP needs to be used, which is different than saying it will be used because the resin is more cost advantaged," Mendelson said on the sidelines of the National Plastics Exposition (NPE) at Orlando. "It is becoming a more performance driven profile."
Two areas of demand growth for PP are the automotive and compounding sectors, he said.
"We are hearing confidence from the market," Mendelson said. "I would say that demand for PP is increasing."
So far, Mendelson said he is not seeing resin imports playing a significant role in the PP market.
"The imports that are of concern to our customers are really the imports of finished goods," he said. "But we are seeing a repatriation of manufacturing in North America, and an increased demand profile in the US. Those are some of the reasons we are bullish on PP."
The four-day NPE is sponsored by the Society of the Plastics Industry (SPI) and runs through Thursday.
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