Global automotive plastics consumption to grow at CAGR of 13.4% from 2013 to 2018

MOSCOW (MRC) -- The global automotive plastics consumption market revenue is expected to grow from USD21,617 mln in 2012 to USD46112 mln by 2018 at an estimated CAGR of 13.4% from 2013 to 2018, as per Plastemart.

In 2012, Asia-Pacific was leading in the Automotive Plastics Consumption volume by 50.5%, followed by Europe (28%), North America (11.3%), and rest of the world (10.1%). Among these regions polypropylene leads consumption by 37%, followed by polyurethanes (PU) (17.3%), acrylonitrile butadiene styrene (ABS) (12.3%), composites (11.5%), high density polyethylene (HDPE) (10.8%), polycarbonates (PC) (6.8%), and polymethyl methacrylate (PMMA) (4.4%), due to their easy forming properties and their availability at cheaper price than other materials.

The researchers on light weight plastic materials such as composite materials, reinforced plastics, and polymers have come up with improved material qualities that make them suitable for use in interior, exterior and under bonnet components of automobiles.

The careful selection of these automotive plastics is very important in the industry as it enables designers to improve durability, meet load bearing requirements, and achieve reduction in vehicle weight. The Automotive Plastics are among one of the widely preferred alternatives for light-weighting of automobile as they offer enhanced properties such as superior impact strength, easy mold-ability, improved aesthetics, and reduced weight as compared to conventional automotive components such as High speed steel (HSS) and Aluminum.

The increasing demand of passenger cars and the supply to fulfill the same in Asia-Pacific is one of the main drivers for increasing consumption of automotive plastics globally.

As MRC wrote earlier, BASF opens new center in Thailand for Asian growing automotive market. BASF has set up a new Coatings Technical Competence Center ASEAN in Bangkok, Thailand. This new facility supports technical and laboratory activities mainly in motorcycle coatings including technology transfer, product development, performance testing, color design and development, and houses a sales and marketing team as well as a technical service team of more than 20 professionals, all catering to motorcycle manufacturers in the ASEAN region.
MRC

MOSCOW (MRC) -- The RM60 billion Refinery and Petrochemical Integrated Development (RAPID) project will not be completed on time due to delays by the Johor government, state oil and gas company Petronas said today.

The mega project was previously slated to start operations in 2016, but Petronas announced today that the date has been pushed to early 2017.

"There has been some delay to state government, which includes housing ... There have been delays in moving the Muslim cemeteries," said Petronas president and group CEO Tan Sri Datuk Shamsul Azhar Abbas at a media briefing here.

The controversial project has met resistance from the locals since last year, as it involves the relocation of 11 Muslim cemeteries and seven Chinese cemeteries in Pengerang, near the project site.

Shamsul Azhar also cited a delay in securing water supply for the project. Petronas stressed today that it has taken over the water supply project from the state government.

The RAPID project is on track to secure its final investment decision (FID) in March 2014, Petronas said.

The RAPID project is set to occupy over 2.43 hectares of the Pengerang Integrated Petroleum Complex’s (PIPC) 22,500 acres, which is home to some 28,000 Pengerang parliamentary constituents in the southernmost tip of Johor.

PIPC is a massive RM170 billion project that is expected to turn Malaysia into a mega petrochemical hub.
MRC

MOSCOW (MRC) -- DuPont, the US chemical giant, has announced that it will increase prices on all of its titanium dioxide (TiO2) products sold in North America, Europe, the Middle East, Africa, Latin America and the Asia Pacific sub-regions, reported the company on its site.

The price increase is effective July 1, 2013, or as contracts allow as follows:

- USD200/tonne for DuPont Ti-Pure titanium dioxide (TiO2) grades sold in the Asia Pacific and Latin America regions;

- USD200/tonne for DuPont Ti-Pure titanium (TiO2) grades sold in the dollar markets or Euro160/tonne in Eurozone markets in the Europe, Middle East and Africa region;

- 8cent/lb for DuPont Ti-Pure titanium dioxide (TiO2) grades sold in the North America region with the exception of DuPont RPS Vantage titanium dioxide products sold into paper and paperboard applications, which will be managed separately.

As MRC informed earlier, in late 2012 DuPont reported of investments that the company were making in all its divisions kept on delivering results which were offset by the weakness in titanium dioxide (TiO2) markets. "Excluding the performance chemicals unit, which includes TiO2, the company expects earnings growth of at least high-teens in 2013 versus 2012. Performance chemicals margins are expected to fall six to seven percentage points in 2013," DuPont said.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
DuPont Titanium Technologies is the world's largest manufacturer of titanium dioxide, serving customers globally in the coatings, paper and plastics industries. DuPon is also supplying TiO2 to Russia and its share in the Russian market has been growing since 2013.
MRC

MOSCOW (MRC) -- Argentina's production of polymer and synthetic rubber fell 14.7% in April compared with the year-earlier period, but was 4.1% higher than March, reported Plastemart with reference to the government statistics office.

Production of these petrochemicals in January-April was down 3.7% from the year-earlier period, according to a report (without giving actual volumes).

Chemical production fell 11.8% in April compared with a year earlier, but jumped 33.6% compared with March.

Output in the first four months of 2013 was down 6.7% compared with the January-April period of 2012. Production of plastic goods by compounders, an indicator of demand for polymers, fell 13.3% in April compared with April 2012 and was down 1.5% compared with March.

In the January-April period of this year, output was down 7.9% compared with the same 2012 period. Petrochemical producers used an average of 81.7% of installed capacity in April, down from 83.3% in April 2012 and up from 78.4% in March.

We remind that, as MRC informed previously, Brazilian state-run oil company Petrobras had rejected all offers for the company's assets in Argentina. The company was interested in selling some, but not all, of its assets in neighboring Argentina. Asset sales are part of a broader plan by the company to raise money for investments within Brazil.

Leading producers include state-run YPF and units of LyondellBasell, Dow Chemical, Petrobras and Solvay Group.
MRC

MOSCOW (MRC) -- The US has announced new sanctions against Iran by identifying eight Iranian petrochemical companies it claims to be owned or controlled by the Iranian government, namely Bou Ali Sina Petrochemical Company, Mobin Petrochemical Company, Nouri Petrochemical Company, Pars Petrochemical Company, Shahid Tondgouyan Petrochemical Company, Shazand Petrochemical Company, Tabriz Petrochemical Company and Bandar Imam Petrochemical Company, on May 31, 2013, according to media reports.

The US also imposed separate sanctions on two companies, Niksima Food and Beverage JLT, a frozen yogurt company based in the United Arab Emirates and Jam Petrochemical Company, an Iranian manufacturer and seller of petrochemical products, suggesting that Niksima received payments on behalf of Jam Petrochemical Company.

The US and the European Union imposed new sanctions against Iran’s oil and financial sectors in order to prevent other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

Turkish players gauge the impact of new US sanctions on Iran. After the US announced new sanctions against eight Iranian petrochemical companies, the impact of this development has started to be felt on the nearby Turkish market, for which Iran is a very important source of supply, particularly for PE. According to media reports, the petrochemical industry is the second largest source of income for the Iranian government after sales of crude oil.

Today, a couple of manufacturers in Turkey reported, "We had shaken hands with a trader for Iranian homo PP raffia last week; however, the trader called us to inform that they have had to cancel the deal since their supplier’s accounts have been frozen following the sanctions."

A veteran Turkish trader, who usually works with Iranian suppliers, also commented, "These sanctions have started to be applied on eight specific petrochemical companies in Iran because their majority stakes belong to the government. However, none of these 8 companies have direct sales in Turkey. Hence, we don’t expect to see a major impact of this development on the Turkish market as there are still Iranian suppliers who are able to conduct their export business without being affected by these sanctions."

As MRC wrote earlier, United Against Nuclear Iran (UANI) is asking South African energy giant Sasol to immediately declare an end to its business in Iran and take the steps necessary to complete such an exit, the US-based advocacy group said on Monday.

Sasol maintains an active presence in Iran through the Arya Sasol Polymer Company (ASPC), which operates two polyethylene plants in Iran. The company is a USD900 million joint venture between Sasol and Iran's state-owned National Petrochemical Company (NPC).

MRC