Spiraling polymer prices are causing great concerns to the plastics and allied industries, and have been the hot topic of discussions over the last few months. Escalating oil prices have been blamed for the rise in feedstock prices, which in turn have led to rising polymer prices, currently lingering at record peak levels. Read more in Why are oil prices rising?
When will the rise in oil prices and subsequently feedstock prices be arrested? Will polymer demand be affected by high prices? These are few of the questions raised by the industry. Read more in the speech by Mr PP Kharas, President OPP on 27 Aug 2004 at the AGM of OPPI. Let us look at the increase in the prices of oil, feedstocks and polymers and ascertain whether an increase in oil prices has resulted in the increase in prices of the basic feedstocks or is booming demand leading to an increase in polymer prices? Will demand of polymers be adversely affected due to higher prices?
The rising costs of energy products do not seem to have caused any major upheaval so far. The present outlook calls for the growth trend to continue in the second half of the year. Read more in economic growth forecasts amid soaring oil prices.
An important precursor to a continued recovery in the manufacturing sector is expanding corporate profits. Figures from USA indicate total corporate profits were up 32% in the first quarter of 2004 as compared to the year before. Other important economic indicators like housing, construction, packaging, automotive, also portend continued improvement in the U.S. economy and the plastics sector during the second half of 2004. Read more in Demand for Plastics in USA : Favourable trends continue in second half of 2004.
Globally the growth rate of plastics at the consumption of 165 million tons in 2003 continues to outperform the World GDP growth even after 60 years of commercial usage. Click here to read about World plastic consumption pattern for 2003.