09 April 2013 14:14 [Source: ICIS news]
DUBAI (ICIS)--Stretch film consumption in Europe is expected to decrease in 2013 because of weak market fundamentals, driven by the eurozone debt crisis, an industry official said on Tuesday.
“Stretch film consumption in Europe went down by 70,000 tonnes in 2012 from 1.3m tonnes in 2011 because of the eurozone debt crisis,” said Luigi Scagliotti, sales and marketing manager Europe at Saudi Arabia-headquartered Savola Packaging.
He was speaking on the sidelines of the Gulf Petrochemical and Chemical Association (GPCA) Plastics 2013 conference in Dubai.
He said: “People are buying less refrigerators and household goods, so less film is needed to wrap up these goods. Demand is expected to go down further in 2013. Another reason for the declining demand is down-gauging.
“The thickness of stretch film is decreasing. Also, pre-stretch film is becoming popular in Europe, leading to a sharp decline in consumption of [conventional] stretch film.”
He added more linear low density polyethylene (LLDPE) stretch film is expected to be imported from the Middle East.
“In the coming years, you are going to see most of the commodity grade of LLDPE stretch film in Europe such as C4 and C6 being imported from the Middle East. European producers will focus on high-value grades such as C8 LLDPE and metallocene linear low density polyethylene [LLDPE].”
The two-day conference ends on Tuesday.
Additional reporting by Muhamad Fadhil
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