NEW YORK, April 27, 2016 /PRNewswire/ -- The polypropylene (PP) market is the second largest volume polymer business in the world today, making up 25% of global polymer demand. Less competitive regions will have to adapt through supply rationalizations or with new product and process innovations. Polypropylene, also known as polypropene, is a thermoplastic polymer used in a wide variety of applications including packaging and labelling, textiles, stationery, plastic parts and reusable containers of various types. As the crude oil prices are capricious in nature and are directly linked with polypropylene; it is creating pandemonium in European polypropylene market in terms of production, demand, supply, exports and imports.
Polypropylene market has been segmented in to by application and by country. Propane is one of the most important feedstock in Europe accounting for approximately 70% of the propylene market, which in turn is used in the manufacturing of polypropylene. Polypropylene products permeates a wide range of items and include almost every sphere of life such as clothing, construction, furniture, agriculture, automobiles, packaging and many more. With growing population, the demand for these sectors has seen an upsurge in the recent past. The increased consumption of plastic products from major developing applications with rapid industrialization is considered as the key driver for the rise of demand in European market.
Packaging applications accounts for the largest volume of growth despite weak consumer spending and competitive pressures. PP is losing share to HDPE in caps and closures and under pressure from recycled HDPE in transit packaging. Despite these pressures PP is gaining sales via the development of new grades of resin offering high clarity and fast cycling and via the ingenuity of processors developing solutions with high levels of consumer appeal such as in mould labelling.
The polypropylene revenue is set to grow over the forecast period, with growing demand across the region. With the region seeing an increase in the demand the revenue of the polypropylene market is anticipated to grow, attributed mainly to the huge potential of Europe's petrochemical industry, we envisage it surpassing its past records in terms of demand growth.
The report also focuses on Europe in terms of changing trends of polypropylene production, demand, pricing, exports and imports with respect to decline in crude oil prices. It also gives in depth analysis on the supply chain of polypropylene in the European market.
The value chain for polypropylene starts with the identification of suitable feedstock for the desired petrochemicals. While North America and China are addressing their propylene shortfalls with alternative technologies and feedstocks, Europe, is anticipated to solve imbalances to its propylene supply with additional imports from the nations with oversupply of the product. Currently, there are two PDH units in Europe, but all indications are that new PDH and MTO-MTP investments are not viable options. Hence, the only option left for meeting the demand is increasing imports, which will eventually bridge the gap between propylene and polypropylene.
The report also includes overview of major companies such as:
Ineos Group Limited
LyondellBasell Industries N.V.
SABIC (Saudi Arabia Basic Industries Corporation)
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