Molded Plastics: A Global Strategic Business Report
San Jose, CA (Vocus/PRWEB) January 20, 2011
Global molded plastics market is on the threshold of an important dynamic change. Asia is rapidly emerging as the new center of balance in the global market, given the strong levels of industrialization in the region’s major economies like China and India. The lower per capita consumption in Asia as compared to the developed markets additionally highlight the ample untapped opportunities in store. North America, Japan and Western Europe, the traditional power players are gradually losing steam and plastics producers from these regions are ceding market share to players from Asia-Pacific and the Middle East. The developed countries/region, which have been exporters to the world market are likely to turn net importers in the next few years as older plants are likely to be shut down due to inefficiencies, while most of the new additions are being made in Asia and the Middle East.
Plastics, including molded plastics, represent one of the most ubiquitous raw materials used in a wide gamut of industries ranging from construction, automotives, packaging, electrical & electronics, appliances to medical products. Given its omnipresent use, the recession and the financial crisis eroded the market’s health, especially during the years 2008 and 2009. World plastic consumption, therefore, plummeted to hurting levels, during the years 2008 through 2010, as a result of unprecedented weakness in most key end-use application markets, which were hit with a general decline in plastic based products. The recession has brought out the construction and automotive industries as the two major causalities. The complete meltdown of the real estate, housing and construction industry resulted in cancellation, postponement, and general weakness in new office, commercial and residential building projects as a result of lack of credit and rising vacancy rates. Depreciation in home values, decline in new housing starts, crumbling consumer confidence, rising levels of unemployment, and reduction in household wealth, among others, resulted in adversely impacting residential building construction spends. All of these factors negatively impacted demand for plastics in the construction/buildings end-use sector. The automobile industry, one of the most important end-users of plastics, was also one of the worst hit industries by the recession with automobile production and sales nose-diving. Plant closures, capacity idling, scaling back of operating capacity in the auto industry sent ripples of broad based declines across all of the upstream raw material markets including molded plastics.
The sprawling electrical & electronics and appliances industry also succumbed to the inescapable symptoms of the recession, such as, lower discretionary spends and the ensuing weak consumer demand for personal computers, cell phones, cameras, heaters, refrigerators, laundry equipment, radios, TVs, office machines, electric power equipment, motors and controls, wiring equipment, semi-conductors, capacitors, resistors, coils and transformers among numerous others. With the level of economic activity slowing down, the recession has made a disproportionate impact on industrial production as a result of reduced manufacturing and commercial activity. This decline in manufacturing output, brought in reduced demand for molded plastics in industrial and consumer packaging applications. The food packaging end-use sector however fared better, in comparison, as food is a highly inelastic product. Global trade in plastics also received a setback. The recession has predominantly been transmitted across all regional boundaries through the international trade system and trade linkages beginning with the US trade flows. Deterioration in general global trade conditions, including in plastic trade, therefore resulted in the collapse of regional export oriented markets.
However, with the recession currently at its tail end, optimism prevails over a quick recovery in market prospects. Replenishing of depleting inventories in the supply chain as a result of resurging production activities on wings of improving end-user demand will additionally help perk up demand for molded plastics. Continued shifting of global production bases to low cost Asian countries, increase in foreign investments, and rise in the number of new manufacturing establishments will witness Asia-Pacific emerge into a prime driver of growth. China and India will especially emerge over the global horizon to drive growth in the medium to long-term period, as stated by the new market research report on Molded Plastics. The Middle East, during the last decade, has also emerged as a serious player in the global market owing to the twin benefits of low raw material and feedstock prices and proximity to the highly lucrative Asian market. Faced by stagnant or declining domestic market and high competition from the Asian and Middle Eastern players, the Western players are likely to decrease their production of commodity plastic resins, and films such as polyethylene and focus on the premium and specialty polymers.
High Density Polyethylene (HDPE) possesses features such as low-weight, non-toxicity and recyclability, and consequently finds growing use as a substitute for environmentally unfriendly substances. The key area of application for HDPE includes milk bottles and a range of hollow goods produced through the use of blow molding method. Europe represents the largest Molded HDPE market globally. Polypropylene (PP) is considered to be the fastest growing commodity thermoplastic worldwide. As several new and innovative technologies emerge, improved polypropylenes are being introduced in order to challenge engineering plastics. Asia-Pacific represents the largest and the fastest growing market for Molded PP.
Major players in the market include ABC Group Inc., Ameri-Kart, BASF SE, British Polythene Industries Plc, Chevron Phillips Chemical Company LLC, Continental Structural Plastics, Inc., Doeflex-Vitapol, E. I. du Pont de Nemours and Company, Eastman Chemical Company, Exxon Mobil Corporation, Formosa Plastics Corporation, Huntsman International, LLC, INEOS, Kaneka Corporation, LyondellBasell Industries N.V., NOVA Chemicals Corporation, OxyVinyls LP, Pactiv Corporation, Reliance Industries Limited, Rexam Plc, Saudi Basic Industries Corporation (SABIC), Shin-Etsu Chemical Co., Ltd., Solvay S.A., StyroChem, The Dow Chemical Company, Total Petrochemicals USA Inc., Tosoh Corporation, and Total S.A.
The research report titled "Molded Plastics: A Global Strategic Business Report" announced by Global Industry Analysts, Inc. provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in tons for major geographic markets including the US, Canada, Japan, France, Germany, Italy, United Kingdom, Spain, Russia, Asia-Pacific, Middle East and Latin America. Product markets analyzed include Molded HDPE, Molded LDPE, Molded LLDPE, Molded Polypropylene, Molded Polystyrene, and Molded PVC.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Molded_Plastics_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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