Roger Rumer, vice president of Bayer MaterialScience, said last week that the rapid growth in global PC demand was mainly driven by the growth in demand for consumer goods in emerging markets. It is reported that from 2007 to 2008, about 300,000 tons/year of new PC production capacity will be put into production worldwide.
Although market demand has grown rapidly, Rumer is not particularly optimistic about the earnings outlook of the PC industry. He pointed out that PC makers are still facing a severe test, mainly because of the price of benzene and phenol, the main raw materials for PCs, and they are still near the highest historical prices in the recent period. In particular, the unplanned shutdown of some phenol plants this year has caused supply to become tense and prices have risen again.
Manufacturers said that the region with the strongest and fastest PC growth in the world is the Asia-Pacific region, with an average annual growth rate of more than 10%. In the next few years, the demand for PCs in North America and Europe will grow at an annual rate of 5% to 6%, of which the growth rate in Western Europe will be much lower than in Eastern Europe.
It is reported that Bayer plans to open a second PC production line with a capacity of 100,000 tons/year in Shanghai before the end of 2008. The specific start date depends on the market conditions.
SABIC Innovative Plastics said it is currently evaluating the feasibility of building a PC production facility in Asia. The program was implemented by SABIC Kayan, a company owned by SABIC Innovative Plastics. A vice president of the company’s resin business said: “Saab Kayan is building a new 260,000-ton/year PC device in Al-Jubail, Saudi Arabia, and is expected to start production in 2009. We will consider Asia invests in new PC devices."
In addition, South Korea’s Hunan Petrochemical Company’s 65-million-ton/year PC facility in Yeosu, South Korea, will be completed in the fourth quarter of 2008. The total investment of the project is 192 million US dollars and will be the first PC device of Hunan Petrochemical Company.
According to the manufacturer's analysis, the construction, automotive, and multimedia markets are still areas of rapid growth in PC consumption. In addition, PC/ABS blends for green buildings and recyclable consumer goods are also one of the fast-growing markets, and the market demand for flame-retardant products used in the IT field is also strong.
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