Global thermoplastic polyolefin market to register CAGR of 7.1% to reach USВ3.7 bln in 2022

MOSCOW (MRC) -- The global thermoplastic polyolefin market was valued at US$2.4 bln in 2016 and is expected to reach USD3.7 bln in 2022, growing at a CAGR of 7.1% between 2016 and 2022, as per Plastemart.

Thermoplastic polyolefin is a light weight material which is a major product in thermoplastic elastomers family. It has lowest specific gravities compared to all other thermoplastic elastomers. TPO is extensively used in automobile and construction industry. In the automotive industry, it is used in interior and exterior components. In the construction industry, TPO is widely used in the production of roofing membrane systems and door panels. It is also used in various end-users like industrial, medical, footwear and rubber goods. Also, the weight reducing property of TPO enhances the vehicle performance in terms of speed, fuel efficiency, and handling.

Advancement in the TPO industry is a major growth factor for global thermoplastic polyolefin market. However, rapid growth in the automotive industry along with a rise in building and construction activities is driving the demand for TPO in the last few years. The TPO market is likely to grow at a healthy growth rate in coming five to six years owing to the growing sales of tires and other rubber products from automotive industry. However, technological challenges can hamper the TPO market. Fluctuating prices of raw materials can slow down the market of TPO near the future. Emerging applications of TPO is expected to serve as an opportunity for global thermoplastic polyolefin market.

The global market for TPO is segmented on the basis of end – user application and region. According to the application, it is divided into automotive, building & construction, home appliances, medical, industrial, footwear, and others. Automotive is the largest end-use industry for TPOs and growth of the automotive industry is proportional to the global TPO market’s growth. The growth of automotive industry mainly in the emerging economies is likely to drive the future demand for TPOs.

North America led the market in terms of volume. The market size of TPO in North America in the year 2016 was USD billion and is expected to observe a significant growth over 2017-2022 owing to rapidly growing automotive, construction, packaging and medical industries in the region. U.S is likely to contribute considerably towards the regional growth over the forecast period. Europe thermoplastic polyolefins (TPO) market is predicted to record a CAGR of 4.9% over 2017 to 2022 due to its growing applications in packaging and healthcare industries. UK, France, Germany, and Italy are likely to be key revenue pockets of the region. Central & South America TPO market is expected to witness highest gains of 6.9% over the forecast period. Asia Pacific is estimated to be the largest market for TPO in coming period. Rise in application scope in automotive and construction sectors of the emerging markets in Asia Pacific region, especially China and India is likely to be a growth factor for TPO. China is the largest automobile manufacturing country in the world. Moreover, markets in India and Brazil are considered to highly profitable for automobile manufacturing both in terms of production and consumption. The growing automobile market in these countries is expected to boost the market for TPOs over the coming period. Asia Pacific market is anticipated to exceed 1.2 billion by 2022. Increasing expenditure in primarily in Japan, China and India are likely to fuel the products demand over coming period. The market for TPO is emerging in Latin America and is expected to hold a strong CAGR due to growing construction industry. South America (CSA) is the fastest regional segment holding above 6.8% CAGR. The region is observing massive product application in packaging and medical packaging. Middle East & Africa are expected to experience a substantial growth in TPO market in coming years owing to a rapid increase in urbanization leading to rising in the construction industry.

Key industry players include Sumitomo Chemical Company, Arkema S.A., LyondellBasell Industries, ExxonMobil Corporation, Dow Chemical Company, S&E Specialty polymers, DuPont, INEOS Chemicals Company, Saudi Aramco Company, A. Schulman, Mitsui & Company Limited, SABIC Chemical manufacturing company, Noble polymers, and Polisystem UK Limited.
MRC

MOSCOW (MRC) -- The demand for micronized PTFE is likely to get stoked further in the coming years on account of the surging penetration of micronized PTFE in the thermoplastic industry, as per Plastermart.

Considering the increasing demand for micronized PTFE, leading producers are rolling their sleeves up to offer technologically advanced products to their customers, thus expanding their regional footprint, as per TMR Research.

Properties of micronized PTFE such as high tensile strength, low friction, flame abrasion, flame retardancy, and wear resistance have made it useful for use in diverse applications in the thermoplastic industry. In addition, healthy growth witnessed in emerging nations across Asia Pacific has bode well for the PTFE market. According to the report, industries such as automotive, coatings, electronics, and textiles are witnessing excellent growth in Asia Pacific, which in turn has provided significant impetus to the PTFE market in the region. Also in the forthcoming years, the demand for high performance polymers, which show good performance under extreme temperature, is expected to rise, subsequently creating an environment conducive to the market’s growth.

Despite the aforementioned strong prospects, stringent regulations implemented on the use of fluro-chemicals could hamper the market’s growth to an extent. It is important to note in this regard that fluro-chemicals are identified as greenhouse gases and several environmental agencies such as the US Environmental Protection Agency has implemented various restriction on its use. Nonetheless, over the last few years, the use of micronized PTFE has surged across automotive and textile industries, which will enable growth in the global market in the coming years.

Regionally, Asia Pacific will demonstrate lucrative opportunities for the market. According to the report it is likely to show increasing consumption as well as production of PTFE. Rapid industrialization witnessed in Asia Pacific, besides the expansion of its manufacturing sector will augur well for the region’s micronized PTFE market. The demand witnessed in Asia Pacific is majorly driven by applications such as thermoplastic, ink, and coatings.

Overall, the global micronized PTFE market exhibits a high level of competition, on account of the presence of a large number of companies. Thus it also exhibit a fragmented vendor landscape. Some of the most prominent enterprises operating in the global micronized PTFE market are Micro Powders Inc., Gujarat Fluorochemicals Limited, E.I. Dupont De Nemours & Company, Shamrock Technologies Inc., Reprolon Texas, Shanghai 3F New Materials Company Ltd., and Solvay S.A.
MRC

MOSCOW (MRC) -- World oil demand will grow more than expected this year, helping to ease a global glut despite rising production from North America and weak OPEC compliance with output cuts, the International Energy Agency said on Friday, said Hydrocarbonprocessing.

The agency raised its 2017 demand growth forecast to 1.5 MMbpd from 1.4 MMbpd in its previous monthly report and said it expected demand to expand by a further 1.4 MMbpd next year.

"Producers should find encouragement from demand, which is growing year-on-year more strongly than first thought," said the Paris-based IEA, which advises industrialized nations on energy policy.

"There would be more confidence that rebalancing is here to stay if some producers party to the output agreements were not, just as they are gaining the upper hand, showing signs of weakening their resolve," the IEA said.

The Organization of the Petroleum Exporting Countries is curbing output by about 1.2 MMbpd, while Russia and other non-OPEC producers are cutting a further 600,000 bpd until March 2018 to help support oil prices.

The IEA said OPEC's compliance with the cuts in July had fallen to 75%, the lowest since the cuts began in January. It cited weak compliance by Algeria, Iraq and the United Arab Emirates.

In addition, OPEC member Libya, which is currently exempt from the output cuts, steeply increased output. As a result, the overall global oil supply rose by 520,000 bpd in July to stand 500,000 bpd above year-ago levels.

Adding to the challenges of oil producers to support oil prices is rising non-OPEC output, which is expected to expand by 0.7 MMbpd in 2017 and by 1.4 MMbpd in 2018 on strong gains in the United States, which is not participating in the output caps.

Still, strong global demand growth is helping to clear excess barrels with the IEA registering a decline in stocks in industrialized nations in both June and July. Stocks remain 219 MMbbl above a 5-yr average—a level that OPEC is targeting with its output cuts.

The IEA also revised historic demand data for 2015-2016 for developing countries, cutting it by 0.2 MMbpd–0.4 MMbpd. As a result of those historic revisions, the IEA cut baseline demand figures for 2017–2018 by around 0.3 MMbpd–0.4 MMbpd and hence lowered demand for OPEC crude by the same amount.

"The impact of carrying this lower demand base into 2017 against unchanged supply numbers is that stock draws later in the year are likely to be lower than first thought," the IEA said. Changes mainly happened as the IEA revised down historic demand data for Indonesia, Malaysia and Iran while revising up India and keeping China largely unchanged.
MRC

MOSCOW (MRC) -- Jacobs Engineering Group Inc.’s proprietary EUROCLAUS sulfur recovery technology was selected by Tupras for its new sulfur recovery units that will be installed in the company’s Izmit, Izmir and Kirikkale refineries in Turkey, said Hydrocarbonprocessing.

Jacobs’ EUROCLAUS sulfur recovery technology will expand Tupras’ crude slate by processing more sour crudes while reducing its environmental footprint, delivering industry leading SO2 emissions abatement. Under the contract terms, Jacobs will provide technology licensing, basic engineering and start-up services.
MRC

MOSCOW (MRC) -- RP Sanjiv Goenka group company Phillips Carbon Black Ltd (PCBL) announced plans to invest Rs 300 crore to ramp up capacity and is also evaluating a greenfield carbon black plant in South India, as per Plastemart.

"We have a capacity of 4.8 lakh tpa of carbon black and now we will be investing Rs 300 crore in Palej and Mundra plants of Gujarat to add another 80,000 tons of capacity. The new capacity will be ready by FY2019," PCBL chairman Sanjiv Goenka said, adding that a greenfield plant is being evaluated for a capacity of 1.2 lakh tonne in south India.
"We have land in Tamil Nadu and second option is Andhra Pradesh. Two factors will be key factors like location of new tyre capacity and state incentive schemes," he said.

Goenka said currently the project is in formative stage which would get ready in the next few months and then only quantum of investment can be estimated.
MRC