CMAI Completes 2010 World Terephthalates & Polyester Analysis

Jan 20, 2010, 13:00 ET from Chemical Market Associates, Inc.

HOUSTON, Jan. 20 /PRNewswire/ -- Chemical Market Associates, Inc. (CMAI) announces the completion of the 2010 World Terephthalates & Polyester Analysis, an annual global study that covers past and future developments in supply, demand, production, capacity, trade, pricing and profitability of the global terephthalic acid (TPA), dimethyl terephthalate (DMT) and polyethylene terephthalate (commonly referred to as PET or polyester) fiber and PET packaging resin markets for the period 2004 to 2014.  Included with each analysis is 12 months of access to CMAI's online capacity and supply/demand databases with a mid-term supply/demand update incorporating the latest economic and market outlook. New for 2010 editions is access to the key graphics contained in the Analysis in both Microsoft Excel and PowerPoint. The Analysis is a necessary resource for business managers and planning professionals who need to make strategic business decisions in a rapidly changing global economic and market environment.


Current Market Situation

Population growth and increasing per capita consumption by a growing middle class in the emerging markets primarily drives fiber demand growth. Among both natural and synthetic fibers, polyester fiber, due to its ample availability, advantaged cost position and versatile performance characteristics relative to competing materials, is capturing the largest share of demand growth for fibers. PET packaging resin growth rates, however, have outpaced polyester fiber growth over the past five years, and by now PET packaging resins account for over 30 percent of total global polyester production. PET packaging resins historically have grown at nearly two times GDP, but that rate has begun to slow as substitution for glass packaging and other materials has been by and large accomplished.

The global economic downturn in 2008 and 2009 heavily impacted the terephthalates markets and demand for all polyesters fell from 2007 to 2009. Demand for the two polyester feedstocks PTA and DMT also declined as a result. However, DMT suffered an even larger reduction in demand due to the continuing decrease in DMT-based polyester production as producers switch to PTA, as well as a sharp fall in polybutylene terephthalate (PBT) demand. PBT is primarily used in automotive, electronics and other durable applications that were particularly hard hit by the recession.

Market Outlook

As the global economy recovers and continues to grow, textile requirements will grow as well. Polyester fibers are the most economic and versatile fibers in the marketplace today, meeting the demands of a wide variety of applications. Currently, no other single natural or synthetic fiber better meets those needs than polyester. There is no new synthetic or natural fiber on the horizon that threatens to replace polyester. Except in specialized niche applications requiring more stringent performance characteristics, polyester fibers will continue to offer the best value proposition.

In the plastic packaging arena, PET packaging resins are forecast to remain the number one choice for clear, light-weight beverage packages with very limited competition from other plastic resins. PET is typically a clear winner over glass and also competes well with aluminum.  Viable recycling outlets, including bottle to bottle recycling, are creating another barrier to entry for other resins.

To find out more about the current market issues and CMAI's outlook for the TPA, DMT and PET industry, order this analysis now at The analysis is available in electronic format along with access to CMAI's Online Capacity and Supply/Demand databases on CMAI'S website. With updates to the Capacity database as changes in the marketplace occur, and an annual mid-year update to the Supply/Demand database, clients can rely on these databases as a necessary tool for their strategic business decisions.

CMAI is the premier provider of Market, Planning and Business Advisory services offering a unique combination of consulting analytics and expertise for the global chemical, plastics, fibers and chlor-alkali industries. With offices in Houston, New York, London, Dubai, Dusseldorf, Singapore and Shanghai, CMAI has provided expert business advisory services to a broad base of companies across multiple value chains and geographies since 1979. Clients to CMAI services include chemical and oil companies, technology & EPC companies, banking and financial institutions, consumer product companies, textile & apparel manufacturers, brand-owners, grocers/retailers, government agencies and trading companies.

For more information on the 2010 World Terephthalates & Polyester Analysis visit CMAI's website at or contact:

Jamie Van Fleet


11757 Katy Freeway, Suite 700

Houston, TX 77079 U.S.A.

Tel: 1-281-531-4660          Fax: 1-281-531-9966


SOURCE Chemical Market Associates, Inc.