Global LLDPE market to reach an estimated US$41.1 bln in 2017

26-Apr-13

The global linear low density polyethylene industry experienced significant growth during the last five years, and the industry revenue is forecast to reach an estimated US$41.1 bln in 2017 with good growth over the next five years (2012-2017). The industry is consolidated, with Asia Pacific (APAC) and North America dominating this market. A combination of factors such as operating cost, feedstock price (crude oil, naphtha, ethane), feedstock availability, scale and technology, energy costs, oil price, utilization rate, GDP growth, distribution costs, operating rates, environmental issues, and government regulations influences industry dynamics significantly. Lucintel's research indicates that high growth in associated manufacturing industries such as packaging, construction, automotive will boost the industry. Replacement of the low density polyethylene market by linear low density polyethylene due to its low cost and high mechanical quality will be the industry's main driver. Fluctuation of crude oil and ethylene prices is likely to affect the profit margins of linear low density polyethylene players. Introduction of metallocene linear low density polyethylene is a groundbreaking emerging trend that could lead the industry to new growth.