Bayer MaterialScience forecasted at the beginning of December 2007 that, driven by an operating rate of up to 80%, global polycarbonate (PC) demand is expected to grow at an average annual rate of around 8% from 2010 to 2011. Annual demand growth will exceed 200,000 tons, producers are expanding capacity to meet demand growth, and about 300,000 tons/year of capacity is expected to be put into production between 2007 and 2008.
However, the effectiveness of the PC is under severe pressure. Pure benzene and phenol, which are key intermediates in the production of PCs, continue to be sold at high prices. In 2007, the outage of some phenol plants also caused prices to rise and caused supply shortages. The region with the strongest growth and fastest growth is expected to be Asia-Pacific, with an annual growth rate of more than 10%. Bayer's second 100,000-ton/year PC production line in Shanghai will be operational by the end of 2008. Its specific start date will depend on the market, especially in the field of optical media.
Sabic Innovative Plastics said that it is evaluating the production of PCs in Asia, which will be implemented by Sabic's Kayan company. The Sabic Resin Department stated that Sabic Kayan’s 262,000-ton/year PC unit, which is under construction in Jubail, Saudi Arabia, will be put into production in 2009.
In addition, South Korea’s Hunan Petrochemical Company’s 65-million-ton/year PC facility in Yeosu, South Korea, is scheduled to be completed in the fourth quarter of 2008. This 200 billion won (US$192 million) investment will be the first PC device of Hunan Petrochemical Company.
Demand for PCs in North America and Europe grew at an annual rate of 5% to 6%. However, the demand growth in Western Europe is much slower than in Eastern Europe.
According to the manufacturer's analysis, the construction, automotive, and optical media markets continue to be the areas where PC consumption is rapidly growing. Other areas that are growing particularly fast will include PC/ABS blends for green buildings and recyclable consumer goods. The demand for flame-retardant products for consumer goods and IT applications, as well as window glass for the construction and automotive markets, is also strong.
However, the effectiveness of the PC is under severe pressure. Pure benzene and phenol, which are key intermediates in the production of PCs, continue to be sold at high prices. In 2007, the outage of some phenol plants also caused prices to rise and caused supply shortages. The region with the strongest growth and fastest growth is expected to be Asia-Pacific, with an annual growth rate of more than 10%. Bayer's second 100,000-ton/year PC production line in Shanghai will be operational by the end of 2008. Its specific start date will depend on the market, especially in the field of optical media.
Sabic Innovative Plastics said that it is evaluating the production of PCs in Asia, which will be implemented by Sabic's Kayan company. The Sabic Resin Department stated that Sabic Kayan’s 262,000-ton/year PC unit, which is under construction in Jubail, Saudi Arabia, will be put into production in 2009.
In addition, South Korea’s Hunan Petrochemical Company’s 65-million-ton/year PC facility in Yeosu, South Korea, is scheduled to be completed in the fourth quarter of 2008. This 200 billion won (US$192 million) investment will be the first PC device of Hunan Petrochemical Company.
Demand for PCs in North America and Europe grew at an annual rate of 5% to 6%. However, the demand growth in Western Europe is much slower than in Eastern Europe.
According to the manufacturer's analysis, the construction, automotive, and optical media markets continue to be the areas where PC consumption is rapidly growing. Other areas that are growing particularly fast will include PC/ABS blends for green buildings and recyclable consumer goods. The demand for flame-retardant products for consumer goods and IT applications, as well as window glass for the construction and automotive markets, is also strong.
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