Townsend Plastic Industry News

Effects of Shale Gas on the North American Converting Industry

2012-01-28T22:03:01Z

Recent announcements by Shell, Chevron Phillips, Dow and NOVA make it very clear that the polyolefins market in North America will change drastically over the next decade.

The suppliers are banking that the feedstock cost advantage of ethylene from shale-gas-derived ethane will be sustainable and will be the future of the industry, but there are still a lot of questions about what exactly all this means for converters of polyethylene.

Townsend Solutions has a team of research experts dedicated to looking at the impact shale gas will have on the polyethylene industry as they put together Townsend Solutions’ North American Collaborative Market Study: The Effects of Shale Gas on the North American Converting Industry. Some of the research team’s early findings are quite interesting.

The primary effects of the new supply will be felt in the area surrounding the Marcellus shale gas reserve – which will include the Northeastern, Mid-Atlantic and Midwest United States. While there is already a heavy concentration of converters in those areas, the increased PE supply is sure to attract more, and Townsend’s researchers are digging in to discover exactly what that increased competition will mean in terms of everything from PE prices to logistics issues and availability of equipment. Also, beyond the regional impacts, researchers are investigating the potential for inter-material competition, import-export changes and much more.

“The recent shale gas discoveries have cast a lot of uncertainty on the North American and global PE markets, and there is great potential for the downstream market,” said David Anderson, Business Director – Global Polyolefin Consulting at Townsend. “We are excited about this study and exploring the implications of potentially less expensive ethylene monomer on the supply of PE polymers and how this will impact plastic converting business growth and the shifting business dynamics surrounding where plastic goods are produced.”

For more information about Townsend Solutions’ North American Collaborative Market Study: The Effects of Shale Gas on the North American Converting Industry, contact Frances Davidson at +1 281 873 8733 or email fdavidson@townsendsolutions.com.

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.

EVA Market Update and Hold on Tosoh Expansion Project

2012-01-19T17:00:52Z

According to the January edition of Townsend’s Monthly Global EVA Market Intelligence report, US and China have seen positive growth in EVA consumption for 2011. But, since the peak in July there has been a drop in EVA resin purchasing in other regions of the world, specifically Other Asia Pacific and Central South America. There was a marked decline in buying interest among customers in the Other Asia Pacific region as customers reviewed their inventories and projections for year end. China is over capacity on encapsulation sheet grades and Townsend market experts are predicting a depletion of stock. For the most part, prices have declined for all types of EVA in the last half of 2011. Western Europe has seen a recent decline in the photovoltaics segment but with orders in other markets making up the difference, the demand for EVA has been normal.

Earlier this month PlasticMarketData reported on planned capacity announcements in Asia, including an announcement for a 2013 expansion at Tosoh’s EVA production line at the Nanyo, Yamaguchi Japan plant. According to a recent statement by Tosoh “they currently have no announced plan for this expansion and the project is currently on hold." We stand corrected, and apologize for the oversight.

For the latest on global EVA demand, capacity and pricing contact Frances Davidson at +1-281-873-8733 Extension 120 or email fdavidson@townsendsolutions.com.

New Townsend Market Intelligence Report: EVA Global Market Monthly

2011-12-08T15:15:53Z

First in a series of planned Market Intelligence Reports, Townsend’s EVA Global Market Monthly reports on EVA pricing & capacity changes around the world. Covering six key regional and global markets for EVA resin, the monthly intelligence reports cover current market activities, trends & drivers and transactional resin pricing (by %VA content range).

“This report fills a significant gap in EVA market intelligence” states David Anderson, Director of Consulting for Houston based market research firm Townsend Solutions. "Townsend is set to report on monthly pricing, trends and issues affecting growth in EVA markets around the world so our clients can be fully informed by the end of the first week of every month. This real time reporting is key for EVA buyers, petrochemical producers and other suppliers to the global EVA supply chain."

The EVA market was expected to see "robust" growth of upwards of 10% globally in 2011. This has been stalled by a variety of factors including unexpected slowdowns in key growth areas like solar cell applications. Stay informed with monthly updates! For subscription information and a free sample report contact Frances Davidson at +1-281-873-8733 Extension 120 or email fdavidson@townsendsolutions.com.

Townsend to Survey European HDPE & LDPE/LLDPE Buyers

2011-11-20T18:10:24Z

Beginning in February, more than 3,500 European Polyethylene processors will have the opportunity to provide extensive feedback to their resin suppliers regarding product and service offerings via the global market research firm, Townsend Solutions.

CLASS PE Europe is sponsored every two years by major resin suppliers serving the European plastic processing marketplace. Rich in historical data, this program has evolved over the years to become the industry standard for measuring customer satisfaction in the plastics processing marketplace. Variables impacting survey design and demographic coverage are collaboratively designed by steering committee comprised of representatives from both Townsend and subscribers to the program. This meeting will be held in Frankfurt Germany in early January 2012.

For information on participating, or to launch a CLASS customer satisfaction program for your business contact bmitchell@townsendsolutions.com or call +1-281-873-8733.

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.

Plastic Market Monthly: PET Pricing Update

2011-11-20T17:46:42Z

According to Townsend's Plastic Market Monthly Report, bucking previous industry predictions of
continuing rising costs, PET resin prices headed downward again after only a slight upturn in September. This is mostly due to lower feedstock costs and lower demand. All indications are that prices will continue to decline for the short term. The PMM’s volume-weighted-average for
PET in October decreased 2.9 cents-per-pound, C-PET saw a 3.6 cpp decrease while all other grades, Bottle, A-PET and Wide-Spec, experienced decreases ranging from 2.5 to 2.7 cpp.

Recent increases in PET recycling may have an impact on the virgin resin market in due time. After staying flat for two years, the volume of PET bottles recycled in the U.S. in-creased in 2010, pushing the recycling rate close to 30 percent for the first time since 1996. PET recycling also got a boost from higher sales in the bottle market.

Market sources report Coca-Cola is still trying to sell its PET recycling plant in Spartanburg, S. C., which is currently operating on a limited basis. The plant is a joint venture with United Resource Recovery Corp. Houston-based M&G is scheduled to open a plant in Corpus Christi, Texas sometime in 2014. This plant will have more than 2 billion pounds of annual PET capacity. This venture will make M&G the region’s largest producer of PET.

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.

Plastic Market Monthly: LLDPE Pricing Update

2011-11-20T17:38:54Z

According to Townsend's Plastic Market Monthly Report, LLDPE resin prices experienced a significant price drop in October. A decrease in ethylene contract prices for the month, plus a wildly fluctuating spot market, coupled with lower demand gave LLDPE resin buyers some welcome relief in October. The volume-weighted average for all LLDPE resin grades dropped 2.8 cents-per-pound (cpp) in October. Resin deliveries were virtually unchanged in October compared to September levels, and converters maintained their inventory levels at ten days of supply.

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.

Heat Stabilizer Market Changing

2011-09-07T18:40:58Z

The global heat stabilizer market is expected to have increased growth through 2015. Heat stabilizers fall into three main categories: Mixed metals (BaZn, CaZn, CdZn), Tin based, and Lead based. Lead based stabilizers were the highest volume in 2007, but due to toxicity and environmental concerns, they are on the decline being replaced by the other types. New developments include safer organic and rare earth stabilizers, but market penetration is slow due to higher cost. In Europe, heat stabilizers have moved from Barium Zinc to Calcium Zinc (BaZn to CaZn). Industry players expect the same transition in North America and other regions of the world.

Per Townsend Solutions, a global consulting firm, heat stabilizers are used to prevent the thermal degradation of certain polymers during periods of exposure to elevated temperatures. The main application for heat stabilizers is to stabilize polyvinylchloride (PVC), derivatives of PVC and blends.

Virtually all rigid and flexible PVC utilizes some type of heat stabilizer, especially extruded PVC to prevent degradation during processing. Extruded PVC is used in Wire and Cable, Film and Sheet, Pipe, Window Frames, and Fencing. Therefore, heat stabilizers are very dependent on the strength of the PVC market.

From the list above, one can see that the extrusion PVC market is closely tied to the residential housing and commercial building market. If we look at the global PVC market in the developed regions like North America and Western Europe where the housing and construction markets have been depressed since the global financial crisis, PVC consumption has been on a steady decline. For example in the US and Canada, the extrusion PVC sales were down nearly 38% from the highs in 2006. Through July 2011 sales of PVC resin for extrusion applications in the US and Canada was 4 billion pounds versus 2006 levels where January to July sales were 7.2 billion pounds.

However, in the developing regions like China, India, and the Middle East, the housing and construction markets continue to grow. China became the largest market for heat stabilizers in 2007, surpassing both North America and Western Europe combined. The region has experienced double digit volume growth for more than a decade.

Townsend publishes a Global Plastics Additives report every three years. The most recent study provides an assessment of 2011 demand and supply, with an outlook to 2016. For more information about Townsend’s market study of Heat Stabilizers, Antiblocking Agents, Antioxidants, Antistatic Agents, Biocides, Chemical Blowing Agents, Coupling Agents, Flame Retardants, Impact Modifiers and PVC Processing Aids, Light Stabilizers, Lubricants/Mold Release Agents, Nucleating/Clarifiying Agents, Organic Peroxides, Plasticizers, Slip Agents, and Additive Producers, please contact Frances at fdavidson@TownsendSolutions.com.

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.

2011 Mid-Year Review of North American HDPE Pipe Market: Strong Demand Continues

2011-08-16T15:38:54Z

From new drainage systems for golf courses to the rebuilding of North America’s infrastructure, PE pipe & conduit is experiencing resurgence in growth similar to what was seen in pre-economic crisis times. In the 2011 Townsend Polyethylene Report, we reported a nearly 21% jump from 2009 – 2010 in PE consumption for the pipe & conduit market for all PE resin types. About 90% of the market uses HDPE in pipe & conduit applications. While many other PE markets have retracted somewhat from the remarkable 2010 rebound, during the first half of 2011, HDPE for pipe & conduit is showing continued high growth of over 16% compared to first half of 2010. The highest growth is in the non-corrugated applications including potable water, gas distribution, industrial/sewage, and conduit.

In the 2002 – 2007 time-frame, HDPE for pipe & conduit applications grew at an average annual growth rate (AAGR) of 8% / year. Then the economic slow-down of 2008 and 2009 took a huge toll on the HDPE pipe market, falling nearly 30% from 2006. Now, if the first half of 2011 demand continues at the current pace, 2011 HDPE demand will approach the peaks seen in the 2006 – 2007 period. Driven by a ever increasing demand for the replacement of decaying utility piping infrastructure and the growing acceptance of HDPE, the market opportunities for HDPE pipe are numerous and sizable.

According to the Townsend Plastic Buyers Database, there are about 225 PE pipe manufacturing sites in all of North America. The major producers of HDPE pipe have changed considerably in the last 10 years due to mergers, acquisitions and divestitures. Of note: Advanced Drainage Systems purchased Hancor making it the largest HDPE pipe producer, the Rinker Group divested the plastic pipe and liner operations creating “Polypipe”, Arnco and Dura-Line merged to create A-D Technologies, and USPoly Company, J-M Manufacturing and PW Eagle combined to form JM Eagle. The Top 5 producers ADS / Hancor, Performance Pipe, JM Eagle, PolyPipe Inc., and A-D Technologies account for 55% of the HDPE pipe market.

Of the suppliers of HDPE resin for pipe, Chevron Phillips has the largest market share, followed by INEOS and Dow Chemical.

Over the last 10 years, we have seen the market shares of ExxonMobil, LyondellBasell and resin sold through distribution grow while Chevron Phillips’ share is lower and the remaining producers have mostly maintained their market shares.

On a global basis, Townsend forecasts the pipe market to have the highest growth of all the major processes through 2015. This is driven not only by emerging markets like China, India, Middle East and Central and South America “building new” infrastructure, but by the established markets like North America “replacing antiquated” infrastructure. Townsend’s multi-client report on bi-modal HDPE, an important grade for pipe, is scheduled to publish in October 2011. For more information regarding any of Townsend’s services including the Townsend Polyethylene Report, Townsend’s Plastic Buyers Database, Townsend’s Plastics Market Monthly (resin pricing) or cost modeling contact Frances Davidson at 281 873 8733 Ext. 120 (fdavidson@townsendsolutions.com) or Peter Callais at 281-873-8733 Ext. 150 or via email at (petercallais@townsendsolutions.com).

The Braskem / Dow Deal: A Win-Win for Both Companies

2011-07-29T17:36:17Z

The Brazilian based company, Braskem, has announced their intended acquisition of Dow’s Polypropylene business. This is a deal that is extremely convenient for both companies according to their future strategies. Based on the recently published 2011 Townsend Polypropylene Report, we forecast the North American and Western European markets to grow at only 2.5% and 2.1%, respectively, per year in the next 5 years, well below the forecasted global PP growth rate of 5.0%/year. However, this acquisition isn’t justified from a market perspective alone.

It’s been some time since Dow signaled that their PP business was not in its future strategy. Low margins, especially in the US, a commodity based product line (non-technology-differentiated) and a necessity of new investments to keep the business growing were some of the reasons for this divestment. As stated by Andrew N. Liveris, Dow's Chairman and Chief Executive Officer recently: “This business has delivered historic margins that do not meet our expectations moving forward and is no longer core to Dow’s strategy. We are shifting our Plastics portfolio from a commodity focus to that of a performance focus. This divestment is directly in line with that strategy, and allows us to continue to focus on our three main priorities: retiring debt, remunerating shareholders and investing in our innovation agenda so that we deliver consistent earnings growth.”

Since 2002, Braskem has had aggressive expansion through acquisitions and strategic alliances, in order to position itself as one of the largest global petrochemical companies. With this acquisition, Braskem becomes the #2 polypropylene producer in North America and gains a foothold in Western Europe, a region that was being served only by a Braskem sales office. Also with this acquisition, the company acquired an amazing platform of innovative PP products such as the INSPIRE™ Performance Polymers. It’s important to mention that the catalyst and technology businesses are not part of this deal and are being kept by Dow. Braskem continued to generate good margins with its operations globally, generating EBITDA in 1Q2011 US$ 570 MM. At this acquisition price (US$ 340 MM, 6.7x PP Dow EBITDA) neither its cash flow nor its “Investment Grade” will be affected. When this purchase is final, Braskem will have a global position in the polypropylene market and will continue to strengthen its position in polyethylene with their new investment in Mexico with Idesa.

Could this be the first sign of a growing trend? As we see more announcements of investments in the US and Canada due to increased availability of shale gas, Townsend believes this will create new mergers and acquisitions opportunities around the world as companies look to better position themselves in the global polyolefins marketplace.

For more information on the polypropylene industry or to obtain a copy of our newly released 2011 North American and Western European Polypropylene Market Study reports please contact Roberto Ribeiro at +1-281-873-8733 Extension 155 or email rribeiro@townsendsolutions.com .

Double Digit Growth Rates for PP Consumption in Central/Eastern Europe… Wow!

2011-07-13T21:00:24Z

Following a decline of -7.1% in 2009, the consumption of Polypropylene in Central/Eastern Europe bounced back with an amazing growth of 21.5% in 2010, on account of higher domestic and export demand for plastic products. While the area was hit hard by the global financial crisis in 2009, strong GDP growth averaging 4.1%/year is projected for the next five years, sustaining. This growth will be supported by (1) ongoing industrialization and infrastructure development, (2) strong growth in consumer products, and (3) Russia’s major investment in new oriented PP film lines.

In terms of capacity, several new PP plants have been brought on-stream in this region over the past few years and six new plants are currently being planned for the region and are scheduled to come on-stream during 2011 to 2015. New plants are planned for Russia, Uzbekistan and Kazakhstan. With these capacity additions, the region is expected to have a net surplus of PP, with net imports dropping from 995 kt in 2010 to 867 kt by 2015. Of note, CEE will move from to a net import position in 2010 of 419 kt to a balanced foreign trade position and be a net exporter of 5 kt in 2015.

Townsend’s 2011 Central & Eastern Europe Polypropylene Market Study is available now. To obtain a copy of this report please contact Frances Davidson at +1-281-873-8733 Extension 120 or email fdavidson@townsendsolutions.com .

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.

Townsend Projects North American HDPE / LLDPE / Swing PE Capacity to Lag Behind Consumption by 2015

2011-07-11T21:15:23Z

Newly published research by Townsend Solutions reports that North America’s HDPE/LLDPE/Swing PE consumption is projected to increase from 12,230 kilotonnes in 2010 to 14,857 kilotonnes in 2015. At the same time, average HDPE/LLDPE/Swing PE capacity for the region is forecast to increase from 15,541 kilotonnes in 2010 to 15,866 kilotonnes in 2015. This means that, in the absence of further capacity announcements, the consumption/capacity ratio for low pressure PE in North America will increase from 78.7% in 2010 to 93.6% in 2015.

The 2011 Townsend Annual Polyethylene Report detailing global consumption, capacity and trade is available now. To obtain a copy of this report please contact Peter Callais at +1-281-873-8733 Extension 150 or email petercallais@townsendsolutions.com.

Polystyrene Pricing Update

2011-07-11T20:39:16Z

Polystyrene resin prices fell in June as feedstock prices dipped but the declines were hampered a bit by tight supply caused by several plant outages in May and June.

Both ethylene and benzene contract prices were down in June. The volume-weighted-average for Polystyrene Crystal resin grades dropped 2.2 cents-per-pound (CPP), while the volume-weighted -average for HIPS resin grades fell 2.1 cpp in June.

More than three-quarters of the Polystyrene resin buyers reporting their prices to the PMM (Plastic Market Monthly) reported lower prices in June.

PMM data providers are projecting a 2.8 cpp decline in the volume-weighted-average price for Crystal Polystyrene resin in July and a 2.0 cpp decrease in HIPS resin prices.

Townsend's PMM benchmarks monthly transactional resin prices for PS, PVC, PP Copolymer, PP Homopolymer, PET, LLDPE, LDPE, HDPE Molding and HDPE Extrusion in the US and Canada. To participate in the benchmark or obtain subscription information please contact Terry Ulery at +1-281-873-8733 Extension 133 or email to tulery@townsendsolutions.com.

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.

Polypropylene Consumption in North America Bounces Back Strong After Recession

2011-06-22T16:44:12Z

According to the recently published Townsend Polypropylene Report on Global Consumption, Capacity and Trade, polypropylene (PP) consumption increased 7.3% in the US, Canada and Mexico in 2010, the first year since 2004 that consumption has grown. Although consumption was dramatically reduced in 2008/2009, the strong recovery can be attributed to the stimulus package for autos and appliances and restocking of the supply chain which was de-inventoried during the recession. Mexico’s growth was 13.2%, nearly double its more developed neighbors. Townsend forecasts modest growth in PP consumption at about 2.5% AAGR in the countries comprising NAFTA for the period 2010 to 2015, with the strongest growth in the automotive, sheet and non-woven segments.

For more resin-specific consumption and growth forecast data by world region, process, market or application segment please contact us via email or call +1-281-873-8733.

Japanese Crisis Continues to Impact PVC Supply/Demand

2011-05-17T16:14:00Z

PVC resin prices in the US and Canada continue to gradually push upward as Ethylene prices climb higher and demand strengthens in an already tight PVC market.

According to Townsend’s Plastic Market Monthly, 90% of buyers who reported their April pricing to our market analysts experienced increases in the prices they paid for PVC resin, with the average price for all PVC resin grades climbing 2.8 cents per pound in April to 46.8 cpp.

Traditionally, exports have taken up the slack in sales resulting from sluggish demand for PVC in the US construction and housing industry, which accounts for three-quarters of all domestic PVC demand. Seasonal demand in the domestic PVC market is expected to rebound causing cuts in export production which will further tighten the market and help fuel price increases.

The crisis in Japan also had a significant impact on US PVC supply/demand. Imports from Japan plummeted, as expected, due to plant outages caused by the earthquake and tsunamis. Three PVC plants, with a combined capacity of 818,000 mt/year, representing 41% of Japan’s total PVC production, shut down. Demand for US resin from countries normally importing from Japan is causing shortages to some US buyers.

At present time, Japan is still dealing with rolling blackouts and the looming summer power usage restrictions, which will likely disrupt pipe factory operations; however, most plants are expected to resume operations by the end of May. Taking into account the situation in Japan coupled with high oil prices, PVC resin prices appear likely to continue their upward climb, at least in the immediate future. Email Terry to receive a sample PVC Pricing Report.

US Ethylene Contract Prices Climb Higher

2011-05-09T19:50:00Z

Ethylene contract prices climbed higher again in April, settling up another 3.5 cpp for the month at 57.25 cpp, with more increases expected in May.

Any relief in sight? Hopefully. Crude oil prices did dip in the first week of May, falling below $100 barrel for the first time in weeks. There is also a lot of talk among ethylene producers about adding capacity in the next few years. The recent discovery of large quantities of natural gas in shale rock throughout North America is providing a new, less expensive option for ethylene feedstock and production.

Last month, Dow Chemical, Chevron Phillips Chemical, Nova Chemicals and Westlake Chemical all announced plans to increase North American ethylene production. LyondellBasell also threw its hat into the ring in early May with the announcement by CEO Jim Gallogly the company is looking at expansions at existing plants, possibly in Channelview and La Porte, Texas, in the next few years that will increase ethylene output by about 500 million pounds a year. The company is also reportedly considering the construction of a cracker in a joint venture with other producers.

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.

Propylene Monomer Prices Expected to Reach Record Highs in April

2011-04-19T20:39:00Z

Propylene monomer prices are expected to reach record high levels in April – rising as much as 20% in one month – and that increase and possibly more is expected to be passed on to Polypropylene buyers very quickly. Supplier nomination letters are coming with a flurry, announcing double-digit increases, mid-month increases and pricing levels that have never been seen before in the Polypropylene market.

Tight propylene supply is to blame after a large number of first quarter 2011 refinery turnarounds. More than 20 US refineries were offline for at least some time during the first three months 2011. High crude oil prices also play into the mix. Not surprisingly, demand for PP has dropped and some processors are looking into material substitutions, but with long approval processes and higher polyolefin cost across the board, many are simply stuck paying the higher prices.

Savvy resin buyers monitor real transactional pricing. Townsend’s Plastic Market Monthly (PMM) is the only pricing publication based on real transactional prices reported directly by resin buyers and covers 11 unique PP resin grades. Each monthly report contains historical pricing data, pricing projections for the upcoming month, monomer and feedstock pricing, current economic data affecting the markets, insight on inventory levels, and news about current supply, demand and market conditions. In exchange for transactional data, qualified PMM subscribers receive preferential pricing on annual subscriptions and access to more than 20 years of historical price data. Email Sue Thackeray to receive the April PP Pricing Reports.

Solar Panel Encapsulant Film & Solar Battery Sheet Sealant Markets Drive Growth for EVA

2011-03-17T17:47:00Z

Newly published research by Townsend Solutions reports that global EVA consumption is forecast to grow at an equivalent AAGR of 5.7% through 2014 to almost 4,400 KT, significantly higher than global GDP growth rates. Solar panel encapsulant film and solar battery sheet sealant markets are fueling this high growth.

According to David Anderson, Director of Townsend’s Global Polyolefins Consulting Practice, “Solar encapsulant film applications will exhibit growth of about 25%/year and solar battery sheet sealant markets will exhibit about 20%/year growth in applications using HEVA (>25% VA content resins) and MEVA (17 – 25% VA content resins). These two markets alone are forecast to consume 20% additional MEVA and HEVA’s over the 5 year period. The forecast for MEVA content resins (17-25% VA content) is also strong in other applications like the EVA foam and footwear applications.”

Of the new EVA capacity additions currently planned over the next 5 year period, about 39% of this volume will be located in Middle East/Africa region, 33.5% in Other Asia/Pacific, 16.9% in China and 12.4% in South Korea. South Korea, India, Other Asia/Pacific, China and Japan are forecast to have total EVA growth rates of > 7.0%/year which is well above the average total EVA global growth rate of 5.7%/year.

These global growth projections could be exceeded if sudden oil price escalation multiplies the value of solar generated electricity and the world economies increase their focus to invest in clean energy. The key to sustaining overall EVA growth will be in how the petrochemical industry responds in meeting demand for HEVA’s and MEVA’s. To meet the growing demand of MEVA and HEVA, autoclave capacity might be rationalized in favor of tubular processes; however, this comes with downstream pelletizing and handling investments. In the film and non-packaging markets, there is evidence that HAO mLLDPE and Plastomers are penetrating markets that use VLEVA (1 – 6% VA content) and LEVA (7 – 16%) markets. No matter how you look at it, there is a “bright” future for EVA.

To learn more about Townsend reports on global EVA, HDPE, LDPE, LLDPE, mLLDPE, C6, C8 or PP markets please contact Frances Davidson at fdavidson@townsendsolutions.com

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.

Townsend Survey to Benchmark Customer Satisfaction among European Polypropylene Buyers

2011-03-02T14:00:00Z

Beginning in March, more than 3000 European Polypropylene processors will have the opportunity to provide extensive feedback to their resin suppliers regarding product and service offerings via the global market research firm, Townsend Solutions.

Townsend is launching its 2011 Europe Polypropylene Customer Satisfaction & Loyalty Survey (CLASS). Sponsored by major polymer suppliers including Borealis, INEOS, LyondellBasell and SABIC, Townsend’s CLASS programs are considered the industry standard for independent, third-party perspective and insight into the needs and expectations of the plastic processing community.

“Representing over 9500 KT of annual polypropylene consumption in 2010, Europe (Western, Central & Eastern), is one of the largest PP markets in the world,” stated David Anderson, Director of Global Consulting – Polyolefin Solutions for Townsend. “The economic challenges of the past two years have dramatically affected several application segments for polyolefins, with European markets being among the worst hit. Customer requirements and expectations are changing, and as a result raw material suppliers are rethinking their service strategies. Participating in this survey is an unparalleled opportunity for PP buyers to provide candid opinions and valued feedback to their raw material suppliers.”

Townsend will explore plastic processors’ changing priorities and their satisfaction with the performance of resin suppliers on more than 15 key issues ranging from product performance to sustainability. For more information on Townsend CLASS programs, or to schedule a convenient appointment to participate in the survey, please contact Ms. Barbara Mitchell, Director of Customer Research for Townsend at +1-281-873-8733 Extension 173 or email bmitchell@townsendsolutions.com .

North American PET Producer Revises Price Increase Nominations

2010-12-17T17:18:00Z

Further PET price increases are on the way due to rising feedstock costs, but at least they have shrunk. Eastman just announced that the December 1 increase of 6.0 cents per pound (cpp) has been reduced to 4.0 cpp. The increase brings the total producer price announcements to 30.0 cpp for the year (see red bars).

Based on Townsend’s survey of North American PET resin producers, 16.0 cents of the total 30.0 cents have been implemented from January to November 2010 (see turquoise line). During the same time frame, PET resin buyers have indicated that they have realized a 9.0 cpp increase thus far on resin delivered from January to November (see blue line). Buyers indicated that they expect to realize more of November’s increase with December deliveries.

To begin the new year, Eastman announced a 3.0 cpp increase to take effect January 1, 2011. Feedstock prices for MEG, PX and PTA are continuing to rise significantly, due to higher than normal demand by polyester fiber producers. Sources indicated that the price of cotton rose to unprecedented levels, therefore creating more demand for polyester fiber, as a blend in textile manufacturing.

For more information about Townsend’s pricing services please contact Frances at fmoore-jones@TownsendSolutions.com

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.

Braskem America Announces 3-cent PP Increase

2010-11-24T00:37:00Z

Braskem may be the first North American polypropylene supplier to announce a December price increase for resin. According to their announcement, Braskem’s polypropylene resins will increase by 3.0 cents per pound, effective December 1.

Spot PP resin prices have increased throughout the month of November, as supply of generic resin has tightened. Spot prices may continue to rise as domestic demand has been strong and exports continue.

Braskem ranks as one of the top ten polypropylene suppliers in the Americas. The chart illustrates market share for the top polypropylene suppliers, based on a survey of over 5000 resin processing plants in North America, Central America & South America.

Townsend maintains a global database of buyers of all types of thermoplastics. To contact Townsend, please email Frances at fmoore-jones@TownsendSolutions.com.

Copyright 2011 Townsend Solutions. Visit www.townsendsolutions.com for more on the global plastics industry.