Study: LLDPE Market on the Rebound
March 22, 2010
Linear low density polyethylene (LLDPE) is one of the most important plastics. This market for this major polymer is recovering well from the economic crisis, according to a new study from the market research firm Ceresana Research. "We expect to see significant growth in sales and distribution starting in 2010", said Oliver Kutsch, president of Ceresana.
Late start for LLDPE
LLDPE was offered in North America for the first time during the 1970s; the rest of the world was more hesitant to accept it. However, following its start-up difficulties, LLDPE became the fastest-growing grade of polyethylene. The transparent, exceedingly ductile and dimensionally stable material is now processed primarily into films and other types of packaging. Manufacturers around the world are working on new grades of LLDPE for a variety of additional applications.
China as a driving force
After LLDPE revenue in certain world regions fell by up to a third in 2009, to a combined total of less than 17 billion Euros (24 billion US-Dollars), it is now on the rise again, according to the study "Market Study Polyethylene – LLDPE." China's processing industry is particularly important for LLDPE demand. In China alone there are plans for capacity increases of roughly 2.7 million tons by 2012. The Asia-Pacific region is already the largest market for LLDPE, and the region is expected to consume more than half of all LLDPE manufactured worldwide by 2016.
Growth in the Middle East
Also in the oil-rich countries of the Middle East, plastic production is rapidly expanding. Ceresana expects LLDPE manufacturing in this region will grow at a rate of more than 9% per year until 2016. New production facilities are emerging, for example in Saudi Arabia, Qatar, and Kazakhstan. In contrast, Western Europe and North America are not likely to regain their peak production levels from 2008 in the near future.
Ceresana Research is an industrial market research firm. Companies, institutions, and organizations from more than 40 countries have already benefited from its global market data and prognoses. Its core competencies include: chemicals, plastics, additives, commodities, materials, industrial components, packaging, and construction materials.
Source: Ceresana Research
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