Future trend of petps and engineering resin Market

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Future trends of pet, PS and engineering resin markets

future trends of pet, PS and engineering resin markets

january 10, 2019

analyst Jason keel pointed out that the global pet market is still oversupplied

on November 1, 2018, at the "2018 global plastics summit" (global the special oil pump fully meets the requirements of the aircraft's long-term fatigue test) held in Chicago, the industry analysts of IHS Markit, Jason keel, Brendan Dooley and Javier Ortiz, interpreted the tortuous development trend of the polyethylene terephthalate (PET), engineering resin and polystyrene (PS) market

keel said that the global pet market is still oversupplied to Chinese coatings

"everyone needs water, but more and more people are turning away from sugar." He pointed out that "people are abandoning carbonated beverages, which is the largest application market of PET resin for bottles. At present, the pet market growth is relatively stable, but the operating rate is low, and the production capacity continues to increase."

keel estimates that the growth rate of the global pet resin Market in 2018 is 4%, but North America and Europe are replacing pet with other materials. "Growth is expected to slow down." He said, "this is a structural problem. There is overcapacity not only in China, but all over the world."

in North America, pet producers alpek and indorama currently account for nearly 75% of the total production capacity in the region. Although the North American market is also oversupplied, a large PET plant taken over by alpek, indorama and Far East New Century Corp in Corpuschristi, Texas may be completed in the near future

the plant was originally built by Italy's mg group in 2015, and then stopped construction in 2017 and applied for bankruptcy. The cost overrun of the Corpuschristi factory was one of the factors leading to the bankruptcy of the company

"if the factory is finally completed, the old production line will be closed." "Otherwise, PET production capacity will far exceed market demand," keel said

pet producers in North America were also surprised by the US International Trade Commission's ruling not to impose anti-dumping duties on pet imported from Brazil, Indonesia, South Korea, Pakistan and Taiwan, China. They believe that the low-cost imported PET resin from the above-mentioned countries is destroying the North American market

at present, pet manufacturers are appealing against this ruling. Keel said that when the interval between the two chucks changes, it may lead to a decline in pet prices in North America in the short term. He added that BASF will also show the charging channel of materials and solutions for battery coolant and battery pack fire safety gasket. In the nine months after the United States preliminarily determined to impose tariffs on pet resins from the above five countries and regions, the imports of these five countries and regions have been replaced by other countries

dooley predicted the prospects of several engineering resins, and mentioned the currently chaotic nylon 6/6 market - due to the lack of adiponitrile raw materials, the production of nylon 6/6 was insufficient, leading to a surge in prices

"in the longer term, nylon 6/6 will be in short supply before adiponitrile supply increases in 2020." He said, "in the short term, buyers have raised the price of nylon 6/6 to ensure supply. The price of nylon 6/6 is expected to keep rising until the economy cools down or processors switch to alternative materials - whether such materials are recycled nylon 6/6, metals, or other polymers."

potential alternative materials include: carpet manufacturers turn to nylon 6, and office furniture suppliers use recycled nylon 6/6 to produce star shaped bases for chairs. Dooley also pointed out that some automobile manufacturers are considering reusing metal parts instead of parts partially made of nylon 6/6

"it is more difficult for automobile manufacturers to switch to other polymers." "They are very good at metals, so I don't think they will switch to other polymers," he explained

dooley said that despite the shortage of supply, nylon 6/6 has many emerging applications in the automotive market, including bracket, conduit, oil pan and charging system

dooley said that in other regions, nylon 6 is "an unknown polymer with sufficient capacity". It is precisely because of overcapacity that the operating rate of nylon 6 plants in the world has dropped to 60%, especially in Asia. He also mentioned that nylon 6 manufacturers are also investing in high-performance compounds

at present, the global polycarbonate (PC) market is expanding significantly, especially in China. In 2019, the global PC capacity is expected to increase by 11%, and it is expected to increase by 16% in 2020

dooley said that the increase in capacity may reduce the operating rate and lead to the closure of old PC factories. He added that PC prices in North America and the world are expected to decline slightly in 2019

unfortunately, the PS market has been in a downturn for most of the past year, and the demand in North America has declined by about 5%. "This is a bit worrying for consumers and the industry itself." Ortiz said

in 2018, North American PS production decreased by 4%, while exports increased by about 20%. Ortiz said that the market is currently facing multiple challenges, including rising prices, competition from other materials and environmental pressure

in the field of hard packaging, polypropylene has partially replaced PS, while high-density polyethylene has replaced PS in some plastic boxes and containers. Both materials have more price advantages than PS

at present, the operating rate of PS in North America is slightly lower than 80%, and the demand for PS in 2019 is expected to be flat or slightly decreased. Ortiz said that PS prices in North America may also be "relatively flat" in 2019

"PS is still an ideal product in its existing application field, but it faces certain competitive pressure." He added

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