In the European plasticizers market, a rebound in market activity is expected in September, as market players return from their summer holidays. In the long term, while ortho-phthalate consumption is expected to grow at GDP rates, demand for non ortho-phthalates, which currently accounts for more than 20% of European consumption, is expected to rise over the next five years at a compounded annual rate of approximately 7%.
In the US, demand for plasticizers is expected to increase marginally in the next three months, driven by an increase in the use of polyvinyl chloride (PVC) in the construction industry. Demand for diisononyl phthalate (DINP) and dioctyl terephthalate (DOTP) should hold steady in the near term before experiencing a seasonal slowdown in the fourth quarter. While the use of dioctyl phthalate (DOP) in the US and Canada has nearly disappeared, it continues to be a popular plasticizer in Latin America. Supplies of DOP from Asia are expected to be ample in the near term.
In Asia, market players are waiting for a clearer price direction as the market outlook remains uncertain because of the eurozone debt crisis and slower economic growth in most regions.
Updated to mid-August 2012