China's plasticizer market overall growth rate at 7% per annum

14 September 2012 11:26  [Source: ICIS news]

HONG KONG (ICIS)--The overall growth rate for plasticizer market in the Chinese market is estimated to be at around 7% per annum, with a possibility of an oversupply when new capacities start up in the near term, an industrial source said on Friday.

There will be a few factors that would affect growth: the changes in the Chinese government in March, the outcome of the US election and the outcome of the prevailing eurozone crisis, said Thomas Narbeshuber, general manager of the oxo-alcohols and intermediates division at BASF-YPC. He was speaking to delegates at the International Plasticizers & Upstream Summit in Hong Kong.

He added that the Europe crisis is far from over, and would at least take one to two years for it to settle.

Diisononyl phthalate (DINP) and dipropyl heptyl phthalate (DPHP) demand is estimated to grow at an approximate rate of 20% per annum, according to availability of the product, he said.

In addition, factoring in all the new capacities until 2015, China will become more self-sufficient for plasticizers alcohol and this would squeeze margins for producers, he said.

The Asian region will be oversupplied in the future and imports will be floating around, exerting pressure on every market globally, he said.

There will certainly be a shake-up in the industry, he added.

The summit runs from 13-14 September.

By: Samuel Wong

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