InterviewAPIC '12: Global PET demand to total 19m tonnes in 2012 - IVL

18 May 2012 08:14  [Source: ICIS news]

KUALA LUMPUR (ICIS)--Global demand for polyethylene terephthalate (PET) is expected to total 19m tonnes in 2012 and grow by 6-7% per annum going forward, on the back of strong consumption growth in Asia, especially China, India and southeast Asia, a top company official said on Friday.

"Most of this demand will come from Asia while demand [growth] in Europe is expected to be 0-1% this year. Demand [growth] for PET in the US is expected at 2-3% [in 2012]," D K Agarwal, the CEO of Thailand-listed Indorama Ventures Ltd's (IVL) PET business, told ICIS.

Agarwal was speaking at the sidelines of the Asia Petrochemical Industry Conference (APIC) in Kuala Lumpur, Malaysia. The event runs from 17-18 May.

"But this depends on overall global GDP growth ... China is scaling down and we will have to see the impact of them slashing the cash reserve ratio. The reduction has been made, so we need to wait and see what kind of positive impact it may have on the Chinese economy," he said.

"Right now the mood is not so good and the stock markets are not so positive. Demand for PET is coming down and prices are dropping ... Margins are also under pressure in the Asian markets," Agarwal said.

"Demand is not that strong but the next couple of months as the peak period comes in we may see a rebound," he added.

Meanwhile, the company is expected to begin commercial production at its new 300,000 tonne/year PET facility at Kaiping in Guangdong province, China, later this month, Agarwal said.

"The facility is being commissioned now and will start up at the end of May," he said.

The new two-line facility will add to an existing 100,000 tonne/year line at the same site in Kaiping, which will boost the nameplate capacity of the plant to 400,000 tonnes/year, according to Agarwal.

Indorama is the world’s biggest PET producer.

By: Nurluqman Suratman

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