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08-14-2008

Ceresana: New Study on PE-HD

According to a new study by Ceresana Research the Asian Pacific leads worldwide growth of PE-HD and, for the most part, will drive future PE-HD revenue increases. North America and Western Europe accounted for approximately 44% of worldwide consumption during 2007 while Eastern Europe is also profiting from significant growth rates and has reached a market volume of 2.5 million tons.

Asia-Pacific’s portion of worldwide consumption of PE-HD has risen from 31% in 2000, to more than 35% in 2007. Manufacturers in this region are benefiting from Asia’s rapidly growing markets and increasing export possibilities to North America and Western Europe. The PE-HD manufacturing industry is migrating from previously established regions to the continuously growing and cost effective countries in Asia.

In the oil-rich countries of the Middle East, not only is demand for plastics increasing steadily, but so is production. Since the year 2000, PE-HD production in the region has increased an average of 20% per year, whereby Saudi Arabia accounts for a large portion of this. There is no end in sight for this rapid development: Until 2013, projects with a total capacity of 6.7 million tons are planned throughout the Middle East, which is expected to make this region the most important supplier of PE-HD.

Only marginal capacity increases will take place in Western Europe and North America, whereby expansions will primarily come through the modernization of old production facilities. Manufacturers of PE-HD will be required to invest in innovative products and efficient production technologies, in order to stay current among increasing competition.

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