17 May 2013 09:55 [Source: ICB]
Global demand for polyolefins is expected to grow by around 50% between 2012-2022 amid an increase in consumption of linear low density polyethylene (LLDPE), an industry consultant said.
"On a CAGR [compounded annual growth rate] basis, consumption of polyolefins will see growth of 4-5% in the 10-year period to 2022," said Andrew Ho, a Singapore-based CHEM1 consultant.
Demand for polyolefins in Asia will be driven by continued strong growth in China and India, and supported by moderate growth in southeast Asia, he said.
Ho was speaking at the Asia Petrochemical Industry Conference (APIC) in Taipei, Taiwan, which ran on 9-10 May.
"LLDPE continues to capture more of the demand growth over LDPE [low density polyethylene]; this can be attributed to various reasons including performance, availability and price," he said.
LLDPE accounts for 17% of overall polyolefins demand in 2005, and this is expected to grow to 21% in 2025, according to Ho.
Overall demand for polyethylene (PE) in Asia was 34.8m tonnes in 2012, of which China accounted for 55%, he said.
Demand for PE is expected to grow by 4.5% in 2012-2022 on a CAGR basis, moderating from the CAGR of 6.2% in 2002-2012 period, according to Ho.
"Applications in film continue to drive Asian PE demand, accounting for around 75-80% of LDPE consumption and almost 90% of LLDPE demand and over one-third of the high density polyethylene (HDPE) market," he said.
Total polypropylene (PP) demand in Asia was 27.4m tonnes in 2012, with China accounting for 54% of the overall figure, he said.
Demand for PP is forecast to grow by 4.3% on a CAGR basis in 2012-2022, compared with the 6.3% in 2002-2012, Ho added.
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