Backed by solid economic growth of 4.2% - the
best seen in the last 15 years in USA, the plastics
industry in USA grew at 6.9% and reached a consumption
level of almost 52 million tons in 2004. Packaging
and transportation were two sectors that were very
buoyant in 2004 and were responsible for the growth
of plastics in USA.
Overall Polyethylenes showed better growth compared
to Polypropylene.
LDPE grew by 4.5 % domestically, while LLDPE grew
by 7.3 %. The film sector was mainly responsible
for this growth.
HDPE grew even better compared to LDPE/LLDPE,
recording 8.1% growth.
PP did not grow well compared to PE, showing growth
of only about 4.5-5%.
Interestingly, PVC grew at 6.1 % over 2003 because
of strong demand from housing sector. Pipe, profile,
siding, wire/cable used in the housing sector
showed good growth.
After a decline in 2003, Polystyrene also grew
by 3.7 %
Exports of polymers from USA also showed a very
robust growth mainly due to overall global growth,
tighter supply position and a softer American
dollar. Increased competitiveness of US producers,
predominantly dependent on gas, due to price differential
between gas and naphtha also aided exports.
Economic growth seems poised for a healthy growth
in 2005 - It is therefore expected that plastics
will grow well too. It will not be surprising
if the plastics industry in USA repeats the performance
in 2005 as that of 2004. |