Report Indicates Polypropylene Market to Grow Slowly

A period of slow growth in polypropylene consumption will be compounded by new output coming on stream resulting in overcapacity and historically low utilisation levels, according to a recently-published study by market research group Townsend (Houston, Texas / USA). The group's "Polypropylene Report" forecasts that PP usage will grow at an average of 3.7% over the next five years, while suppliers have announced new PP capacities of 10m t/y coming on stream in the same period. This, the researcher says, will result in capacity utilisation levels of below 80% by 2012.

Townsend said that worldwide PP consumption in 2008 stood at 45.5m t, 1.4m t less than in 2007. Improving economic conditions will result in less than 1% growth in 2009 and only in 2010 will PP consumption once again reach 2007 levels, the group predicts.