Analysts predict continued PET overcapacity, but growth for PVC

By Frank Esposito
Senior Staff Reporter

Published: December 28, 2012 6:00 am ET

Willett

Related to this story

Topics Materials, Suppliers

CHICAGO (Dec. 28, 4:55 p.m. ET) — North American PET resin growth is expected to remain low for the near future, while PVC resin growth in the region is trending upward.

This status has helped PVC exports from North America, which have more than tripled since 2007. And in 2012 a recovering U.S. economy resulted in positive domestic growth for the first time since 2004. “I think North American PVC hit bottom in 2011 and now will see sustained growth domestically,” Brien said. “Exports also should continue to grow.”

Brien added that he expects North American PVC operating rates to improve from just over 85 percent in 2012 to almost 88 percent in 2013. But operating rates among makers of PVC pipe and siding — which have been hammered by the drop in construction — are still around 50-60 percent, he said.

Those low rates could be changing as the U.S. housing market recovers. That’s important for PVC, since construction-related uses account for more than half of domestic sales.

“Global construction spending is up in both North America and the world,” Brien said. “Residential construction is picking up in North America because of low interest rates.”

That trend could lift U.S. housing starts back up to the 1.6 million level by 2017, Brien said — well above their current level of 750,000, but still shy of the 2 million mark they hit before the recession.

“The housing market is slowly beginning to rebound,” Brien said. “There’s a tremendous amount of pent-up demand to replace aging infrastructure such as sewer and water pipe. That bodes well for the [PVC] resin side.”


Comments

Analysts predict continued PET overcapacity, but growth for PVC

By Frank Esposito
Senior Staff Reporter

Published: December 28, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Humanoid robot provides inspection service with a smile

October 17, 2014 6:00 am ET

Everyone knows robots can improve production and quality. But no one says they can't show a little personality while they're working.    More

Image

Hasco gets into augmented reality

October 17, 2014 6:00 am ET

Mold makers may be used to seeing cores and pins on the exhibition stand of a supplier — but not augmented reality that looks like it comes...    More

Image

Corbion Purac collaboration taking bioplastics into even more uses

October 17, 2014 6:00 am ET

Corbion Purac NV's collaboration with Taiwan-headquartered compounder Supla Co. Ltd. and Taiwan electronics producer Kuender & Co. is paying...    More

Image

Momentive gearing up for some timely LSR sales

October 17, 2014 10:58 am ET

Momentive Performance Materials Inc. has plenty of time for customers at Fakuma — thanks to colorful new watchbands made with the firm's fiber-...    More

Image

Evonik sees clear growth opportunities with new Plexiglas Resist resin

October 17, 2014 6:00 am ET

Evonik Industries AG presented a new specialty molding compound during Fakuma in Friedrichshafen with which it plans to exploit the growing demand for...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events