Global flexible protective packaging market to register CAGR of over 6% un

MOSCOW (MRC) -- The global flexible protective packaging market is expected to grow at a CAGR of over 6% from 2016 to 2020, according to Technavio.

By product type, this market is segmented into air pillow, bubble wrap, and other types of flexible protective packaging products. One of the most important drivers of this market is that it is suitable for goods with unusual shapes. Large objects, fragile porcelain products, and any other objects that cannot be packed in regularly shaped containers can be packed in flexible protective packaging products like expandable polystyrene beads. Other important drivers of this market are the increased use of these products in the e-commerce industry and their applications in product protection during long transits.

The top three revenue generating geographical segments in the global flexible protective packaging market are:
"The European flexible protective packaging segment occupies the largest share of the global market, being valued at USD 1.65 billion in 2015. This number is expected to grow during the forecast period with a rising demand from consumer services and personal care sector. The healthy growth in the manufacturing of durable goods such as appliances, motor vehicle parts, and industrial machinery and others is creating additional demand, which is driving the market forward," says Sharan Raj, one of the lead research analysts at Technavio for packaging research.
Online retail has the highest requirements for flexible protective packaging products. With an increasing variety of products being shipped, there is an increasing demand for new innovative varieties of products from the flexible protective packaging industry. The UK, France and Germany together account for over 60% of the European online retail market, making them the largest contributors to the flexible protective packaging market.

North America: increased preference for packaged food driving the market - Changing consumer needs and an increased demand for sustainable packaging materials boost the market growth in the region. Changing lifestyles of people is leading to increased adoption of fast and convenience foods in this region. The strict regulations in the region to reduce packaging waste is directly creating an increased demand for flexible protective packaging products. High disposable income among consumers in the region will ensure continued market growth. Retail ecommerce, which is expected to increase by 14.4% in 2016, will drive the demand for flexible protective packaging in the region. The air pillows segment is forecast to grow significantly due to constant increase in Internet shopping and end-user preference for the product.

APAC: fastest growing flexible protective packaging market segment -"APAC is the market with the highest potential for flexible protective packaging and forecast to post the highest growth with a CAGR of almost 9% through 2020. Demographic trends such as population growth and rapid urbanization, economic factors such as industrialization, growth in the manufacturing sector, and increase in international trade will be the major market drivers," says Sharan.
Southeast Asia is on its way to become one of the world's fastest-growing markets for e-commerce. Air pillows are most commonly used in e-commerce packaging and are projected to be the fastest-growing product segment in this region. In response to the growing market in APAC, vendors are undertaking expansion projects in the region. For instance, Storopack, a leading provider of flexible protective packaging products, has established a new facility in Pune, India, to establish an early foothold in the developing market space.

The top vendors in the global flexible protective packaging market highlighted in the report are DynaCorp, Pregis Corporation, Sealed Air, Smurfit Kappa, Storopack.
MRC

Lukoil appoints new VP for sales and supplies

MOSCOW (MRC) -- Russia's second biggest oil producer Lukoil has appointed a new vice-president for sales and supplies after state-owned rival Rosneft clinched several major deals at its expense, three sources told Reuters.

Valery Subbotin, Lukoil's vice-president for oil sales and supplies, ended his 18-year tenure at the company last week and has been replaced by Vadim Vorobyov, previously Lukoil's vice-president for oil refining, gas processing and petrochemicals, according to the sources familiar with the matter.

Subbotin, who holds a 0.0152% stake in the company, will take a senior management position at Lukoil's trading arm Litasco, the sources said.

Lukoil's press office declined to comment and Subbotin did not respond to Reuters requests for comment. Lukoil is Russia's biggest private oil firm and its second-largest oil producer behind Rosneft. The two companies have repeatedly clashed over assets.

Rosneft, headed by Igor Sechin, an ally of President Vladimir Putin, has clinched several big deals in the last two months, including the purchase of a controlling stake in mid-sized oil company Bashneft and a stake in India's biggest refiner Essar.

It also sold a 19.5% government stake in itself to Qatar's sovereign wealth fund and commodities trader Glencore for 10.5 billion euros.

One of the sources said Subbotin's role change was a result of Lukoil losing the battle for the stake in Bashneft. "Lukoil closely cooperated with Bashneft, (and it) really wanted to buy it, but Rosneft appeared to get in the way, and after the closing of the deal started to change the oil trading scheme," said a trader on the Russian oil market.

Since acquiring control of Bashneft, Rosneft has moved to cancel contracts between Bashneft and Lukoil and it stopped buying oil from Lukoil destined for Bashneft's refineries in the republic of Bashkortostan. Rosneft spokesman Mikhail Leontyev told TV station "Rain" (Dozhd) on Oct. 12 that Rosneft had a raft of questions for Bashneft, including about its oil sales with Lukoil.

Rosneft told Reuters that any decisions about Bashneft assets would be made on economic grounds. "The company currently has a contract in force. Its parameters may be changed -- Rosneft, proceeding from its business plan, will set out the most efficient supply routes for these products," it said.

Lukoil used to supply about 700,000-800,000 t of oil per month to the Russian domestic market.

As MRC informed before, Lukoil is set to drill deep for unconventional gas in Saudi Arabia's challenging "Empty Quarter" desert region early next year after a decade-long hunt for conventional deposits that has proved futile. Lukoil Overseas official said the joint venture will drill the first well in the first quarter of 2015 and the second during the last six months.

Lukoil is one of the world's biggest vertically integrated companies for production of crude oil & gas, and their refining into petroleum products and petrochemicals. The company is a leader on Russian and international markets in its core business, which accounts for over 20% of Russian oil production and 18% of the total Russian oil refining. Lukoil also controls two of the largest petrochemical plants in Russia and Ukraine: Stavrolen and Karpatneftekhim.


MRC

Board of Investments approves 3 petrochemical projects of JG Summit Holding

MOSCOW (MRC) -- The Board of Investments (BOI) has approved three petrochemical projects of Philippines conglomerate JG Summit Holdings Inc. (JGSHI) worth P15.8 bln, said Bworldonline.

Two pioneering projects of wholly owned subsidiary JG Summit Petrochemical Corp. (JGSPC) got the nod under the preferred activities of the existing Investment Priorities Plan (IPP) with the endorsement of the Department of Science and Technology (DOST). One GSPC project is a P4.2 bln plant for the production of butadiene and raffinate, and the other JGSPC project is a P3 billion project for the production of benzene, toluene, mixed xylene, C8+/C9+ cut and non-aromatics. Another wholly owned JGSHI subsidiary, JG Summit Olefins Corp. (JGSOC), was given the green light for the expansion of its naphtha cracker plant that will produce additional polymer grade ethylene, polymer grade propylene, mixed C4 and Pyrolysis (Py) gas with a project cost of P8.6 bln. JGSPC is part of the JG Summit Group, one of the largest conglomerates in the country.

"We very much welcome investment projects such as these. The company’s initiative and innovation in expanding their petrochemical plants is definitely a big boost to the manufacturing industry and its sub-sectors," Trade Undersecretary and BOI managing head Ceferino Rodolfo said in a statement.

JGSPC is expected to produce 70,000 metric tpa butadiene and 89,000 Mtpa raffinate. petrochemical products will yield benzene at 126,000 Mtpa, toluene at 76,000 Mtpa, mixed xylene at 46,000 Mtpa, C8+/C9+ Cut at 18,000 M tpa and non-aromatics at 29,000 Mtpa. The JGSOC project is expected to enlist 21 personnel when the expansion operations start in July 2021. Capacity additions will be 160,002 M tpa of ethylene, 51,000 mtpa of propylene, 26,418 M tpa of Mixed C4 and 78,876 Mtpa of Py Gas. These projects will be located at the JG Summit Petrochemical complex in Batangas City.

As MRC informed earlier, in May 2016, JG Summit Holdings Inc. plans to invest USD500-600 mln to expand its petrochemical business in the next three years, aiming to serve domestic as well as overseas markets.
MRC

Plastics to drive global medical implants sterile packaging market until 2016

MOSCOW (MRC) -- The global medical implants sterile packaging market is anticipated to be valued at USD1,427.8 mln by the end of 2016 and this is estimated to increase to USD2,436.4 mln by the end of 2024, registering a CAGR of 6.5% in terms of value during the forecast period (2016 – 2024), as per Persistence Market Research.

Orthopedic implants (including spinal implants, reconstructive joint implants, and extremity braces & support) is expected to gain a significant market share owing to a large global baby boomer population prone to orthopedic ailments.

On the basis of product type the global medical implants sterile packaging market has been segmented into pouches & bags, blister, clamshell, tubes, vials, and others. On the basis of material, the global medical implants sterile packaging market has been segmented into plastic, foils, paper, and others. On the basis of application, the global medical implants sterile packaging market has been segmented into spinal implants, extremity braces & support, dental implants, cardiovascular implants, reconstructive joint implants, and other implants. On the basis of region, the global medical implants sterile packaging market has been segmented into the five key regions of North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.

The pouches & bags product type is likely to emerge the dominant segment throughout the forecast period due to its wide application in multiple pharma industries. The pouches & bags product type segment is estimated to create a large market share of 53.1% in 2016 and is expected to expand at a CAGR of 6.9% from 2016 to 2024 in terms of value. The clamshell product type segment is anticipated to witness high Y-o-Y growth rates ranging from 5.8% to 7.2% over 2016–2024 and is expected to exhibit a CAGR of 7.6% in terms of value over the forecast period. The foils material type segment is expected to create a significant CAGR of 7.3% in terms of value over the forecast period. The paper material type segment is projected to grow at lower Y-o-Y rates ranging from 5.6 - 5.7% over 2016–2024. The dental implants application segment is estimated to account for 13.7% market share by 2016 end and is anticipated to remain stagnant at 13.8% during the forecast period. The cardiovascular implants segment is projected to grow at a CAGR of 7% in terms of value during 2016–2024.

Among regions, Asia Pacific is anticipated to be the key region driving overall demand for medical implants sterile packaging owing to the increasing usage of packaging and growing consumer spending power in the region. Mature markets such as North America and Europe are expected to witness uneven growth while Latin America and MEA are expected to register sluggish growth throughout the forecast period. Europe is anticipated to witness higher Y-o-Y growth rates ranging from 5.9% to 6.2% over 2016–2024, and is estimated to record 7.3% CAGR in terms of value over the forecast period. A growing demand in medical packaging and increasing usage of hygiene packaging among multiple end users is anticipated to drive advances in the industry. Medical implants sterile packaging is one of the emerging packaging solutions, widely used for pharma packaging, and is driven by factors such as increasing implant surgeries, innovative medical equipment and implants, increasing chronic degenerative diseases, and changing lifestyle of people.
MRC

PE imports to Belarus up 32.5% in the first ten months of 2016

MOSCOW (MRC) -- Overall imports of polyethylene (PE) into Belarus rose in the first ten months of 2016 by 32.5% year on year to 106,600 tonnes, with linear low density polyethylene (LLDPE) and low density polyethylene (LDPE) accounting for the main increase in shipments, according to MRC's DataScope report.


According to the National Bureau of Statistics of Belarus, October 2016 PE imports to Belarus dropped to 10,800 tonnes from 12,000 tonnes a month earlier. Local companies reduced their purchasing of all PE grades in foreign markets under the pressure of seasonal factors. Overall PE imports reached 106,600 tonnes in January-October 2016, compared to 80,500 tonnes a year earlier. LLDPE and LDPE accounted for the main increase in supply, shipments of these PE grades grew by 65% and 46%, respectively.

The structure of PE imports to Belarus by grades looked the following way over the stated period.


October total LDPE imports decreased to 2,200 tonnes from 2,900 tonnes a month earlier. Local companies reduced their PE purchasing in Russia on the back of weaker demand for films. Overall imports of this PE grade into Belarus totalled 21,100 tonnes in the first ten months of 2016, compared to 12,800 tonnes a year earlier. An accident at the local producer's ethylene unit and, as a result, a major fall in capacity utilisation at LDPE production in the second half of the year was the main reason for such a great increase.

October LLDPE imports were about 5,000 tonnes, compared to 5,400 tonnes a month earlier. However, overall LLDPE imports exceeded 48,000 tonnes in January - October 2016, whereas this figure was about 33,000 tonnes a year earlier.

October imports of high density polyethylene (HDPE) dropped to 3,600 tonnes from 4,200 tonnes a month earlier. Local companies reduced their purchasing of film grade PE in Russia and Uzbekistan. Thus, HDPE imports were 37,400 tonnes in January-October 2016, up by 8.1% year on year.

MRC