USA to see an uptrend in demand for flame retardants

03-Sep-07
Demand for flame retardants in USA is to rise by 3% pa to 1.2 billion pounds in 2011, at a market value of just over US$1 bln, as per a report by Freedonia. This increase in demand will be driven by increasingly stringent fire codes and flammability requirements, especially in building materials and consumer products. An improved economic outlook in key applications such as wire and cable insulation and jacketing, electronics housings and aerospace products will further drive demand for flame retardants. However, gains will be limited by cost sensitivity in price-competitive markets such as motor vehicles and textiles, as well as environmental and health concerns over several flame retardant chemicals. Among materials incorporating flame retardants, plastic resins (both thermoplastics and thermosets) accounted for over 75% of demand in 2006. The most rapid gains will be seen for polyolefins and other thermoplastics such as engineering resins, which are increasingly used in flame retardant construction and electronics applications. Slower growth is expected for PVC, polystyrene and epoxy resins, although gains will improve considerably from the 2001- 2006 period. Demand for flame retardants in non-plastic materials will advance at a subpar rate, restrained by weakness in the highly mature cellulose insulation market.
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