04 December 2012 07:46 [Source: ICIS news]
SINGAPORE (ICIS)--Global sales from the polyurethane (PU) product market is expected to grow to $43.5bn (€33.5bn) this year, up from $40.6bn last year, buoyed by demand from the key Asia Pacific market, a senior industry executive said on Tuesday.
"[The] Asia Pacific region represents the fastest growing PU market in the world, forecasted to expand at a pace of about 6% through to 2017," said Erman Tan, CEO of Asia Polyurethane Manufacturing.
Overall sales from the PU product market is projected to grow at a compounded annual growth rate of 7.12% from 2011 to 2016, he said.
Tan was speaking at the ICIS Polyurethane Chain Conference in Singapore which runs on 4-5 December.
The projected market revenue is expected to grow to $57.4bn by 2016, he said.
The market currently is facing an oversupply situation on the back of new capacity additions and weak economic conditions, according to Tan.
In 2011, there were 17.1m tonnes/year of PU production capacity globally, up from 16.9m tonnes/year in 2010. This is expected to grow to 21.2m tonnes/year in 2016, he said.
Global consumption of PU totalled 12.8m tonnes in 2011, with flexible foam production accounting for 40.9% of the total figure, according to Tan.
The PU market is dominated by the furniture and interior and construction industries. Electronic appliances, however, are seen as the fastest growing market for PU, he added.
($1 = €0.77)
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