05 July 2013 17:00 [Source: ICIS news]
LONDON (ICIS)--Global markets for polycarbonate (PC), methyl di-p-phenylene isocyanate (MDI) and toluene di-isocyanate (TDI) will tighten by 2015, Bayer MaterialScience CEO, Patrick Thomas, said on Friday.
Continued - though slower - growth in China and recovery in US markets will help to boost demand and tighten supply for Bayer MaterialScience’s key product groups, despite poor conditions in Europe and new projects coming onstream, according to the executive.
He said: “Clearly European markets have been subdued whilst the American market has been picking up. The Chinese market is slightly slower than in the past but is still growing with the magnitude of that growth still relatively high compared to the rest of the world.”
Thomas added: “When I look out to 2015 I see tightening on all our major product streams – PC, MDI and TDI, over that time period. Although there is new capacity coming onstream, demand is growing faster.”
Thomas said that when examining the supply/demand balance, you have to apply a discount factor to announced new projects because typically only around 70% of announced capacity comes onstream.
“We found that by looking at the last decade. We’ve got a reasonably good fix on our main product streams.”
Asked about the chance of a delay to startup of the company’s new 300,000 tonne/year world-scale TDI facility in Dormagen, Germany, because of poor demand in Europe, Thomas said: “We always bring projects online with the market – that’s always been our strategy. You get a licence, start building, prove it works and then choose to ramp it up with the market.”
In January 2013 Bayer said the project was scheduled for startup in 2014.
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