Limited LLDPE demand from saturated and matured markets of North America and Europe

24-Aug-11

The matured markets of North America and Europe have experienced saturation levels of polyethylene linear low density (LLDPE) and the demand from these regions has been quite limited in the recent years. As per a report by Merchant Research & Consulting Ltd., capacity additions are restricted on these markets, some of the producers even had to limit activities and run closures at a number of facilities. The demand however was not left behind altogether driven by the emerging markets of Asia-Pacific and Eastern Europe. Before the crisis period of 2008-2009 the global demand growth rate stood at 6-7% pa. Accounting for approximately 42% of the world LLDPE demand, Asia-Pacific will lead the consumption and the demand is projected to increase globally by annual 4-4.5% in the coming five years. Furthermore packaging and construction industries are forecast to be most lucrative in terms of demand for LLDPE. New capacity additions scheduled for the maturing markets will add up significantly to the market growth.