08-Sep-16 European demand for PP compounds rose by 6.7% in 2015 on the back of surging demand in the automotive and appliance markets, according to a newly published report by AMI Consulting. According to the report's editor, John Nash, European demand for PP Compounds enjoyed the fastest rate of growth of any major region of the world in 2015.
In the automotive industry PP Compounds offer benefits in light-weighting which is a key metric for the industry as it tries to meet increasingly demanding requirements on fuel economy. Whereas the drive for light-weighting is impacting demand for some plastics, PP compounds are gaining from these requirements. PP compounds are gaining market share from polyamide, styrenics and metal.
Particularly fast growing is glass fibre reinforced PP which is supplied to the automotive industry in both short and long glass fibre formats. Glass reinforced PP is increasingly used in semi-structural applications like front-end modules, instrument panel carriers and door modules.
The leading producer in Europe is LyondellBasell. Other large PP producers which also sell compounds include Borealis, ExxonMobil, SABIC and Total. A second type of compounder doesn't make PP resin, but instead offers a multi-polymer range of compounds and include companies such as Sirmax and So.F.Ter. A third category of compounder invests from overseas and includes GS Caltex, Mitsui, Washington Penn and most recently Kingfa. Demand in Central and Eastern Europe has been growing rapidly because of increasing production of cars and appliances and the region is now challenging the German powerhouse for scale
