09 October 2012 16:20 [Source: ICIS news]
BUDAPEST (ICIS)--European nylon (or polyamide) 6,6 sources expect downstream engineering plastic demand in 2013 to be up to 10% below 2012 levels globally, they said on Tuesday.
Average expectations are for demand to be around 5% below 2012 levels because of weak macroeconomic conditions both in Europe and Asia.
“It’s not a nice picture. Most expect 0 to 5% negative growth in engineering plastics next year. Some say globally it could be as bad as minus 10%. The last three years have seen growth reduction of 8% each year,” a producer said on the sidelines of the 46th annual European Petrochemical Association (EPCA) conference in Budapest.
Engineering plastics demand has been supported through much of 2012 by exports of finished automotives to Asia. Demand in Asia, however, is weakening and players expect this to have an adverse affect on European demand.
“The trigger is China isn’t so good, so demand in Europe isn’t so good,” a nylon compounder said.
Demand is expected to be weakest in the downstream tyre cord market because of poor macroeconomic conditions.
Nevertheless, growth is expected for the airbag sector based on forecasts of higher exports of finished goods to Latin America and Asia because of new automotive safety legislation.
The annual EPCA meeting runs from 6-10 October.
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