Due to the drive of emerging economies such as China, India, Latin America, and Central Europe, it is expected that polymer demand will accelerate faster than global GDP growth from 2011 to 2014, with an annual growth rate of more than 5%.
CMAI (Houston) statistics show that in 2009 global polymer consumption was approximately 176 million tons, of which polyethylene consumption accounted for 38%, close to 67 million tons. The annual growth rate exceeds 5%, and in 2014, the demand for polyethylene will exceed 87 million tons. High-density polyethylene (HDPE) accounts for 17% of global polymer demand, approximately 30 million tons; linear low-density polyethylene (LLDPE) and low-density polyethylene (LDPE) account for 11% and 10%, respectively. The strong growth in demand for LLDPE and HDPE was attributable to the increase in the use of packaging supplies and non-durable goods. Most of the new LDPE production capacity in the world is LLDPE and HDPE. In 2010, the economy bottomed out and demand grew faster. At present, the supply of polyethylene in the US market has tightened and the operating rate has reached 90%. The situation in the European market is similar to that of the United States. The German domestic market will continue to grow, and the export market will gradually increase. The Turkish market will grow by more than 10% annually, and all regions in the world will be higher than the level in 2009. It is expected that the growth in polyethylene demand in 2011 will not be as significant as this year, and will be closer to the level of GDP growth, which will increase by 4.5% to 5.5%.
In 2009, most of the polyethylene products in the United States were exported to China where large-scale infrastructure construction was underway. This year, more exports to Canada and Mexico. The decrease in U.S. exports to China is due to the slowdown in China's economic growth, while more new capacity has entered the Chinese market to compete. The impact of new production capacity in the Middle East is weaker than expected because some production capacity in the Middle East has not been put into production on schedule, and production capacity growth is slower than expected. Next year, as new capacity is put into production and new products are put into the market, the global market will take longer to reach a balance between supply and demand. North American producers will not compete with Middle Eastern producers whose major markets are China, Latin America and Europe. Some producers have announced that they will close down some of their loss-making capacity in response to fierce market competition. LyondellBasell closed its 185,000-ton/year LDPE plant in Carrington, UK. Last year, Total closed two LDPE units in Carling and Gonfreville, France. This year, Borealis will close 150,000 tons/year of LDPE capacity in Stenungsund. Saudi Basic Industries shut down its 12 million tonne/year LDPE plant in Geleen, the Netherlands.
ExxonMobil Expands Butyl Rubber Capacity According to a recent report from the US Downstream Network today, ExxonMobil Chemical Subsidiary Japan ExxonMobil Co., Ltd. announced that its Japan Butyl Rubber Co., Ltd. has completed expansion of Kawasaki butyl rubber plant. The production capacity increased by 18,000 tons/year, and its total butyl rubber production capacity reached 98,000 tons/year to meet the growing demand for butyl rubber in the Asia-Pacific market. The company's expansion will use the new process technology recently developed by ExxonMobil Chemical. For example, one of the new patented technologies allows butyl polymer polymerization temperatures to reach -75 degrees Celsius, while conventional techniques have a reaction temperature of -95 degrees Celsius. This new technology can significantly reduce energy consumption and save investment. ExxonMobil Chemical is an industry leader in the development and application of high-end butyl rubber polymers. Its products have a longer life, can save energy, reduce greenhouse gas emissions, and thus bring higher added value. In order to meet the growing demand in the butyl rubber industry, NBR has already expanded its energy several times in the near future. This expansion is also a further service of the growing butyl rubber market. In 2008, ExxonMobil Chemical raised its production capacity of its Betan butyl rubber plant in Texas by 60%. Prior to this, Japan Butyl Rubber Co., Ltd. had increased its Kashima halogenated butyl rubber plant capacity by 17,000 tons/year in 2006.
CMAI (Houston) statistics show that in 2009 global polymer consumption was approximately 176 million tons, of which polyethylene consumption accounted for 38%, close to 67 million tons. The annual growth rate exceeds 5%, and in 2014, the demand for polyethylene will exceed 87 million tons. High-density polyethylene (HDPE) accounts for 17% of global polymer demand, approximately 30 million tons; linear low-density polyethylene (LLDPE) and low-density polyethylene (LDPE) account for 11% and 10%, respectively. The strong growth in demand for LLDPE and HDPE was attributable to the increase in the use of packaging supplies and non-durable goods. Most of the new LDPE production capacity in the world is LLDPE and HDPE. In 2010, the economy bottomed out and demand grew faster. At present, the supply of polyethylene in the US market has tightened and the operating rate has reached 90%. The situation in the European market is similar to that of the United States. The German domestic market will continue to grow, and the export market will gradually increase. The Turkish market will grow by more than 10% annually, and all regions in the world will be higher than the level in 2009. It is expected that the growth in polyethylene demand in 2011 will not be as significant as this year, and will be closer to the level of GDP growth, which will increase by 4.5% to 5.5%.
In 2009, most of the polyethylene products in the United States were exported to China where large-scale infrastructure construction was underway. This year, more exports to Canada and Mexico. The decrease in U.S. exports to China is due to the slowdown in China's economic growth, while more new capacity has entered the Chinese market to compete. The impact of new production capacity in the Middle East is weaker than expected because some production capacity in the Middle East has not been put into production on schedule, and production capacity growth is slower than expected. Next year, as new capacity is put into production and new products are put into the market, the global market will take longer to reach a balance between supply and demand. North American producers will not compete with Middle Eastern producers whose major markets are China, Latin America and Europe. Some producers have announced that they will close down some of their loss-making capacity in response to fierce market competition. LyondellBasell closed its 185,000-ton/year LDPE plant in Carrington, UK. Last year, Total closed two LDPE units in Carling and Gonfreville, France. This year, Borealis will close 150,000 tons/year of LDPE capacity in Stenungsund. Saudi Basic Industries shut down its 12 million tonne/year LDPE plant in Geleen, the Netherlands.
ExxonMobil Expands Butyl Rubber Capacity According to a recent report from the US Downstream Network today, ExxonMobil Chemical Subsidiary Japan ExxonMobil Co., Ltd. announced that its Japan Butyl Rubber Co., Ltd. has completed expansion of Kawasaki butyl rubber plant. The production capacity increased by 18,000 tons/year, and its total butyl rubber production capacity reached 98,000 tons/year to meet the growing demand for butyl rubber in the Asia-Pacific market. The company's expansion will use the new process technology recently developed by ExxonMobil Chemical. For example, one of the new patented technologies allows butyl polymer polymerization temperatures to reach -75 degrees Celsius, while conventional techniques have a reaction temperature of -95 degrees Celsius. This new technology can significantly reduce energy consumption and save investment. ExxonMobil Chemical is an industry leader in the development and application of high-end butyl rubber polymers. Its products have a longer life, can save energy, reduce greenhouse gas emissions, and thus bring higher added value. In order to meet the growing demand in the butyl rubber industry, NBR has already expanded its energy several times in the near future. This expansion is also a further service of the growing butyl rubber market. In 2008, ExxonMobil Chemical raised its production capacity of its Betan butyl rubber plant in Texas by 60%. Prior to this, Japan Butyl Rubber Co., Ltd. had increased its Kashima halogenated butyl rubber plant capacity by 17,000 tons/year in 2006.
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