New Impulses: Ceresana Publishes Market Study on Polyethylene-LLDPE

Linear low density polyethylene (LLDPE) is the most versatile type of polyethylene. Large amounts of this plastic are used in the production of films in particular.

Konstanz, Germany, December 17, 2014 --( Global revenues generated with LLDPE amounted to US$ 40.0 billion in 2013. A new study of the market research institute Ceresana expects global market value of LLDPE to increase by about 3.9% p.a. until 2021.

High Growth Rates

The largest sales market is Asia-Pacific that consumed 11.3 million tonnes of LLDPE in 2013. An increase of another third of this amount is to occur in this region until 2021. Ceresana also forecasts high growth rates for the Middle East and South America. The markets for LLDPE in North America and Western Europe, on the other hand, will grow by only just above 1% per year. Yet growth prospects are still better than those for other types of polyethylene such as LDPE or HDPE.

Shale Gas Drives Down Prices For Primary Products

The shale gas boom in the US has a significant effect on ethylene production and thus markets for polyethylene. The strong decline of prices for ethane has led to a number of new ethane crackers being built. Cracking ethane yields a higher amount of ethylene than does the cracking of naphtha or other feedstocks. As a result of these projects, production capacities for polyethylene is the USA are rising. Faced with increasing pricing pressure, several European producers have announced to either close their crackers or to change over to using imported ethane as feedstock. Western Europe is the only world region to reduce output of LLDPE in upcoming years as capacities will not be expanded and some facilities will be closed.

Films Dominating

LLDPE is most commonly used for the production of films. This sector accounted for about 81% of total demand in 2013. Flexible packaging films constitute the largest segment, followed by bags and sacks. Accordingly, in all regions the by far largest amount of LLDPE is processed using film extrusion. Other important applications are rigid packaging and construction products.

The Study in Brief:

Chapter 1 provides a presentation and analysis of the LDPE market – including forecasts up to 2021: for each region, demand, revenues and production will be explained. Additionally, demand per processing technology (film extrusion, extrusion coating, other extrusion, injection molding, and other processes) will be analyzed. Chapter 2 provides 35 country profiles which list LDPE demand, revenues as well as imports and exports. Demand for LDPE split by applications is examined in more detail for the 16 largest countries. Chapter 3 offers a detailed analysis of applications for LDPE. Data on demand development in individual applications is given for the world as a whole and split by the regions Western Europe, Eastern Europe, North America, South America, Asia-Pacific, the Middle East, and Africa. The applications analyzed separately are packaging films, bags and sacks, other films, rigid packaging, construction products, and other applications. Chapter 4 provides profiles of the largest manufacturers of LDPE, clearly arranged according to contact details, turnover, profit, product range, production sites, profile summary, products, and applications. Extensive profiles of 79 manufacturers are given, including LyondellBasell, ExxonMobil Chemical, SABIC, Dow Chemical, NPC, SINOPEC, CNPC, Braskem, Versalis and Mitsubishi Chemical.
Martin Ebner
+49 7531 94293 0
Technologiezentrum, Blarerstr. 56, 78462 Konstanz, Germany