Adhesives & Sealants Headlines / Market Trends / Raw Materials and Chemicals

U.S. and Europe to Outpace Asia in Global Polyethylene Demand

July 31, 2014
/ Print / Reprints /
ShareMore
/ Text Size+

Global polyethylene demand is forecast to rise by approximately 3.7% per year between 2013 and 2018, at a slightly higher level than its growth during the 2003 to 2013 period, according to a recent report from GlobalData. The report states that this higher-than-historic increase will occur in the U.S. and Europe, primarily in Russia. The U.S. is expected to see a 2.4% growth rate per year during the forecast period, in comparison to its 0.7% levels from 2003 to 2013. Meanwhile, demand in Europe, including Russia, will climb at 2.8% per year from 2013 to 2018, almost three times the level witnessed during the last decade. These demand rises in the U.S. and Russia will reportedly be somewhat offset by a lower increase of 4.8% in Asia, compared to its 6% rate during 2003 and 2013, due primarily to the region’s slower economic growth.

“Lower feedstock costs from U.S. shale gas production are providing the country with a competitive advantage, with increasing investments in its petrochemical plants driving polyethylene demand growth in both domestic and international markets,” said Carmine Rositano, managing analyst covering Downstream Oil and Gas. “Although below recent historical levels, demand in Asia remains fairly robust and will continue to boost expansion in the global polyethylene market. 

“As a result, polyethylene capacity is now expected to increase at about 5.3% per year between 2013 and 2018, which is higher than the 3.6% experienced over the last decade. Capacity additions will be most prevalent in the U.S., given its advantaged cost competitive position, as well as Russia, which is augmenting its petrochemical industry to reduce its reliance on imports. New capacity will also continue to come online in Asia, but at a slower-than-historic rate.”

Despite the lower estimated cost of crude oil in the forward price curve to 2018, prices for polyethylene are expected to increase at around 1.3% per year up to the end of the forecast period. This is attributable to petrochemical demand increasing at approximately three times the rate of that for oil.

For more information, visit www.globaldata.com.

Did you enjoy this article? Click here to subscribe to Adhesives & Sealants Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

ASI April 2014 Photo Gallery

Our April 2014 issue is now available!

Podcasts

ExxonMobil Tackifier Expansion

Dwight Tozer, vice president of ExxonMobil’s Adhesion Industry business, discusses the company’s latest tackifier expansion project with Editor-in-Chief Susan Sutton.

More Podcasts

Adhesives & Sealants Industry Magazine

ASI October 2014 cover

2014 October

You won't want to miss our October issue: industry trends from the ASC, converting and packaging, testing, a preview of The Assembly Show, and more!

Table Of Contents Subscribe

Shareholders

Should shareholders have a say in how the money they've invested in a corporation is spent on politics - or if it is spent on politics at all?
View Results Poll Archive

THE ADHESIVES STORE

handbook-sealant-tech.gif
Handbook of Sealant Technology

The Handbook of Sealant Technology provides an in-depth examination of sealants, reviewing their historical developments and fundamentals, adhesion theories and properties, and today’s wide range of applications.

More Products

ASI 2014 Buyers GuideASI's Buyers' Guide

Annual purchasing resource for equipment used in the manufacture/formulation of adhesives, sealants, pressure sensitives, tapes and labels and for application of finished adhesives. 

STAY CONNECTED

facebook_40px twitter_40  youtube_40pxlinkedin_40 google+ icon ASI 30px

Clear Seas Research

With access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.