A few days ago, GlobalData, a consultancy and research firm, released a report saying that the compound annual growth rate of global PE demand will reach 3.7% during 2013-2019, which will be an increase from the value of the past decade.
The report pointed out that this historic high demand growth rate will be the first to be realized in the US and Europe, especially in the Russian market. It is predicted that in the next 4 years, the compound annual growth rate of demand in the US PP market will be 2.4%, a substantial increase from 0.7% in the past decade; during this period, the compound annual growth rate of PP in the European market is expected to increase to 2.8%, A three-fold increase over the past decade.
GlobalData said that although the demand for PP in the European and American markets will achieve steady growth in the next few years, the unexpected recession in Asia may lower the global compound annual growth rate of PP to a certain extent. Due to the slowdown in economic growth, the compound annual growth rate of Asian PP during 2013-2019 will drop from 6% a decade ago to 4.8%.
"Thanks to the large-scale development of shale gas, the United States has an unparalleled strong advantage in raw material production costs. How can a large investment in petrochemical plants further push up the domestic and foreign market demand trends of PP in the region." GlobalData Chief Analysis Division Carmine Rositano said: "In Asia, although the compound annual growth rate of PP in the region will slow down in the future, some local manufacturers will further expand production capacity."
In addition, given that in the next few years, the growth rate of demand for petrochemical products will be as much as three times the growth rate of demand for crude oil, GlobalData predicts that although international oil prices may fall during 2014-2019, global PP prices will still increase year by year at a rate of 1.3%.