Future trends in pet, PS and engineering resin markets

Analyst Tison Keel points out that the global PET market remains oversupply.
1, 2018, at the Global Plastics Summit 2018 in Chicago, IHS Markit industry analysts Tison Keel, Brendan Dooley and Javier Ortiz explained the twists and turns of the polystyrene (PET), engineering resin and polystyrene (PS) markets.
Keel said the global PET market was still oversupplying
China
.
everyone needs water, but more and more people are moving away from sugar, " he says. "People are abandoning carbonated drinks, which is the biggest market for bottled PET resins. At present, PET market growth is relatively stable, but the operating rate is low, and production capacity continues to increase. Keel
that the global PET resin market will grow by 4% in 2018, but that other materials are being replaced in North America and Europe." Growth is expected to slow. "It's a structural problem, not just in China, but around the world. In
, PET producers Alpek and Indorama currently account for nearly 75 percent of the region's total capacity. Although the North American market is also oversupplyed, a joint venture between Alpek, Indorama and Far East New Century Corp to take over a large PET plant in Corpus Christi, Texas, is likely to be completed soon.
the plant, which was originally built in 2015 by Italy's M.G. Group, stopped construction in 2017 and filed for bankruptcy. Cost overspending at the Corpus Christi plant was one of the factors that led to the company's bankruptcy.
if the plant is eventually completed, the old production line will close, " he said. "Otherwise, PET capacity will be much higher than the market demand. North
also surprised by the U.S. International Trade Commission's decision not to impose anti-dumping duties on PET imports from Brazil, Indonesia, South Korea, Pakistan and Taiwan. They argue that low-cost imported PET resins from these countries are undermining the North American market.
, PET producers are appealing the ruling. Keel said the ruling could lead to lower PET prices in North America in the short term. He added that in the nine months since the U.S. initially decided to impose tariffs on PET resins in the five countries and regions, imports from those five countries and regions have been replaced by other countries.
Dooley predicted the future of several engineering resins and pointed to the current chaotic nylon 6/6 market, which is under-produced due to a lack of acetylene raw materials, causing prices to soar.
longer term, nylon 6/6 will be in short supply until its supply increases by 2020. "In the short term, buyers have raised nylon by 6/6 to secure supply. Until the economy cools or processors switch to alternative materials, whether they are recycled nylon 6/6, metals or other polymers, the price of nylon 6/6 is expected to remain high. Potential
include carpet manufacturers switching to nylon 6 and office furniture suppliers using a star base for recycled nylon 6/6 chairs. Dooley also noted that some automakers are considering re-using metal parts to replace parts made from nylon 6/6.
" is more difficult for carmakers to switch to other polymers. He explains, "They're familiar with metals, so I don't think they're going to switch to other polymers."
Dooley said that despite the shortage, nylon 6/6 already had a number of emerging applications in the automotive market, including brackets, catheters, oil pans and charging systems.
, Nylon 6 is "an obscure, well-capacity polymer", according to Dooley, a spokesman for the Company. It is precisely because of overcapacity that the global nylon 6 plant has reduced its operating rate to 60 per cent, particularly in Asia. He also noted that nylon 6 manufacturers are also investing in high-performance compounds.
, the global polycarbonate (PC) market is expanding significantly, especially in China. Global PC capacity is expected to grow by 11% in 2019 and 16% in 2020.
dooley said the increase in capacity could reduce operating rates and lead to the closure of old PC plants. He added that PC prices in North America and around the world are expected to fall slightly in 2019.
, the PS market has been in the doldrums for most of the past year, with Demand in North America down about 5 per cent. "It's a bit worrying for consumers and for the industry itself." Ortiz said.
2018, North American PS production fell 4 percent, while exports grew by about 20 percent. Ortiz said the market was currently facing multiple challenges, including rising prices, competition from other materials and environmental pressures.
in hard packaging, polypropylene has partially replaced PS, while high-density polyethylene has replaced PS applications in some plastic boxes and containers. Both materials have a price advantage over PS.
currently operating at just under 80 per cent in North America, and demand for PS is expected to be flat or slightly lower in 2019. Ortiz said PS prices in North America could also be "relatively flat" in 2019.
" PS is still an ideal product in its existing applications, but it is facing some competitive pressure. He added.