Shale gas may boost PP’s packaging share

By Bill Bregar
Senior Staff Reporter

Published: November 19, 2013 1:34 pm ET
Updated: November 19, 2013 1:36 pm ET

Related to this story

Topics Packaging, Polyethylene, Polypropylene, Materials Suppliers

ATLANTA — The U.S. shale gas boom will result in increased production of polyethylene and polypropylene, once additional cracking capacity comes on line, said Joel Morales, polyolefins director at IHS Chemical in Houston.

More PE production will have the biggest impact on U.S. blow molding, but for packaging, the spread between PE and PP is not as big as it was a few years ago, Morales told attendees of the Society of Plastics Engineers' Blow Molding Conference.

That means the comparative properties of PE and PP, and not strictly price, will be a bigger factor in deciding which to use.

PP is still not as cheap as PE. But Morales said the volatility of PP pricing will decrease, and pricing should smooth out after the next two years or so.

Still, PP remains a very small portion of the global blow molding market, he said.

The annual SPE conference was held in Atlanta from Oct. 8-9.

Rudy Underwood, the American Chemistry Council's senior director of government affairs, also touted the new strength in U.S. energy production. "We have a very bright future and it's due to the shale gas," he said.

So far, Underwood said, about $100 million in chemical production investments have been announced in the U.S., because of the surge in available shale gas and oil. Some of the money is from direct foreign investment.

The potential is huge, he said: possible chemical industry capital investments of $72 billion.

Morales said PET will not get any real advantages from the shale boom, since ethylene is only small component of PET.

But PET pricing will moderate from 2013-15 because of new capacity coming on in North America and worldwide. PET, which is the largest blow molded resin by volume, globally is going to be "very oversupplied," Morales said.


Comments

Shale gas may boost PP’s packaging share

By Bill Bregar
Senior Staff Reporter

Published: November 19, 2013 1:34 pm ET
Updated: November 19, 2013 1:36 pm ET

Post Your Comments


Back to story


More stories

Image

Citadel opens second compounding facility in China, near Shanghai

January 27, 2015 3:22 pm ET

Citadel Plastics Inc., the American manufacturer of thermoplastic and engineered composite compounds, has opened its second facility in China,...    More

Image

Sales, profit fall at DuPont

January 27, 2015 3:13 pm ET

Materials giant DuPont Co. will use almost all of the proceeds from an upcoming spinoff — one that includes its fluoropolymer and titanium...    More

Image

A. Schulman, Citadel continue buying blitz

January 27, 2015 11:32 am ET

A. Schulman Inc. and Citadel Plastics Inc. — two deal-happy materials firms — were at it again in the second half of 2014.    More

Image

Materials market sees more deals

January 27, 2015 11:26 am ET

Plastics materials deals showed modest growth in 2014, increasing 6 percent vs. their 2013 total.    More

Image

UK legislators reject fracking moratorium

January 26, 2015 12:19 pm ET

UPDATED: Environmental campaigners turned their anger on the United Kingdom's Labour party Monday after a vote to impose a moratorium on fracking acti...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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