Price and market trends: Autos, electronics demand to grow in Asia

31 May 2013 09:39  [Source: ICB]

Asia is expected to register demand growth rates in the high double digits for automotives, and slightly above GDP levels for consumer electronics, a senior executive of Bayer Material­Science (BMS) said on 21 May.

 Polycarbonate demand from the automotive sector is set to rocket

Copyright: RexFeatures

Automotive is one of the biggest application markets for polycarbonate (PC) globally, but in Asia, both automotives and consumer electronics are equally important for PC, said BMS's vice president for Asia-Pacific commercial operations, Michelle Jou.

"Here in Asia, automotives are also very important but on top of that, a very big proportion of our business comes from the consumer electronics sector," Jou said at the sidelines of the Chinaplas exhibition.

Consumer electronics refer to a wide range of products, including game consoles, TV sets, IT-related products such as laptops, and office equipment such as printers and fax machines, she said.

MANUFACTURING BASES
Many major original equipment manufacturers (OEMs) of consumer electronics are based in Asia, including Sony, Samsung, Canon, LG, Panasonics, she added, and the world's largest original design equipment manufacturers (ODMs) of laptops are based in Taiwan.

ODMs design the laptops and produce the components. Most computer brand owners do not consider manufacturing as their core competence, so they outsource the design and manufacturing to the ODMs, she said.

ODMs decide which material to apply in the laptops and about 90% of the world's ODMs are based in Taiwan. Most of the world's laptops are assembled in China, in areas such as Kunshan and Suzhou in east China.

Many of the assembling plants in China had moved to inland areas such as Chongqing in response to the Chinese government plans to develop the western regions of China, she added.

Consumer electronics have evolved in terms of aesthetic and practical designs and textures, so advanced technology and material are required in this application sector, she said. "You have to design a different resin grade for this application sector, because customers will need different product features," she added.


By: Chow Bee Lin
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