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Breaking NewsIndustry News

Polypropylene Market Set for Strong Growth

July 1, 2008

KONSTANZ, Germany - A new study from Ceresana Research reports the worldwide polypropylene (PP) market carried a volume of 45 million tons and a value of approximately $65 billion. During the next few years, there will be a considerable increase in PP capacities and an improved supply of the preliminary product, propylene. Although cost pressures are rising as a result of higher prices for raw materials, energy and transportation, Ceresana expects PP revenues will more than double by 2016, due to higher prices and greater sales volumes.

In China and India, new factories are constantly being developed. Within the next five years, manufacturing capacities in both countries will be expanded by more than 7.5 million tons.

Saudi Arabia and the other Gulf States are also entering the market, with large PP production facilities being constructed. PP manufacturing capacities will more than double within the next five years. Although domestic demand within the Arab nations continues to remain low, export values will be superior. The Middle East is progressing to become one of the most important suppliers of PP.

Throughout Canada, the United States and Western Europe, small PP factories with capacities of less than 200,000 tons will continue to be closed. As a result of this, over the next few years the importance of these countries as PP exporting nations will continue to diminish.

Visit www.ceresana.com for additional information.

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