Capacity build, possible oversupply could affect US PPS market

21 March 2013 21:22  [Source: ICIS news]

HOUSTON (ICIS)--Faced with strong demand growth, a manager at Chevron Phillips Chemical (CP Chem) said on Thursday that only risks he sees in the polyphenylene sulphide (PPS) market are capacity and potential oversupply.

“I don’t really see much risk on the demand growth side... I think there are plenty of factors that are going to facilitate that,” said Kyle Mathis, engineering polymers general manager at the US-based specialty chemicals company.

The risks are on the supply side, including how much capacity is being built and if there is going to be overbuild in the specialty space, he said after his presentation at the IHS World Petrochemical Conference.

“I think you’ve got China looking at the space very carefully,” he added, “and at some point, there’s some risk in oversupply.”

Still, Mathis said growth rates for high-performance polymers are well above typical commodity GDP rates, due to global drivers and requirements.

“Even if it doesn’t come in at the numbers that [analysts are] predicting, anything above 5% growth is going to be healthy growth,” he added.

PPS is a polymer that has good dimensional stability, particularly toward both thermal degradation and chemical reactivity.

It is used in a variety of segments including the automotive, electrical and electrics, water management and filtration industries.

The IHS World Petrochemical Conference ends on Thursday.

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By: Tracy Dang
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