Recent price hikes for petroleum-based polymers has caused a downturn in demand in Europe in 2005. As per estimates, the European thermoplastics market recorded growth of less than 2%. This decline in growth follows fairly steadily growth witnessed in the past few years. After 2001, the European market has witnessed a growth of 2-3% for three years. Raw material price volatility in 2004 and 2005, coupled by weak consumer demand led to poor overall demand for most thermoplastic resins.
PP demand by volume rose by less than 1% to about 8.5 million tons.
Demand for PET decline to about 5%.
Polystyrene, PVC, Polyamide markets continued on a downward trend already noted in 2004.
Strong growth of 5-6% over 2004 is estimated for polycarbonate and PBT.
Central European polymer demand, boosted by entry into the EU in 2004, lower levels of plastics usage generally and increased consumer spending, grew by 5% in 2005 as compared with 1% for Western Europe. In real terms however, the total market demand translates to barely 3.4 million tons, less than 10% of total European demand of 37.5 million tons.
Will European thermoplastics producers see demand pickup this year? This seems possible only if oil price stabilises or falls.
20-Jan-06 
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