World plastics review

WORLD PLASTICS MARKET REVIEWBy Bill Kuhlke and Dr... MAJOR END USE MARKETSPercent of Total Market US MARKET 2000 kTons END USE 5% 1846 TRANSPORTATION 13% 5290 CONSUMER & INSTITUTIONAL

WORLD PLASTICS MARKET REVIEW

By Bill Kuhlke

and

Dr Tom Walsh

z OVERVIEW OF THE PLASTICS INDUSTRY

z MAJOR THERMOPLASTICS TO BE REVIEWED

z POLYETHYLENE

z POLYPROPYLENE

z POLYSTYRENE

z CONCLUSIONS

THE PLASTICS INDUSTRY

R E S I N S

FABRICATION METHOD

TIME

EN D U

SE

MAJOR WORLD REGIONS

z NORTH AMERICA

z LATIN AMERICA

z WESTERN EUROPE

z EASTERN EUROPE

z THE MIDDLE EAST

z THE FAR EAST

MAJOR END USE MARKETS

Percent of Total Market

US MARKET

2000 (kTons) END USE

5%

1846 TRANSPORTATION

13% 5290

CONSUMER & INSTITUTIONAL

(Toys, Housewares, Medical, etc.)

22% 8554

BUILDING & CONSTRUCTION

(Pipe, Siding, insulation, etc.)

25% 9683

PACKAGING (Bottles, Film, Cups, etc.)

MAJOR END USE MARKETS

Percent of Total Market

US MARKET

2000 (kTons) END USE

100% 39542

TOTAL

11% 4396

EXPORTS

35146 TOTAL DOMESTIC

13% 5228

ALL OTHER

(Compounding, Resellers, Unknown)

1%

464 INDUSTRIAL MACHINERY

2%

924 ADHESIVES/INKS/COATINGS

ISSUES FACING THE PLASTICS INDUSTRY

ISSUES FACING THE PLASTICS INDUSTRY

3. ADDRESS PLASTICS ROLE IN

POSSIBLE CLIMATE CHANGES

4. DEVELOP NEW PRODUCTS

1. For Example: Improved Packaging

a) Longer Shelf Life

b) Less Wastage of Products

c) Improved Health and Safety

ISSUES FACING THE PLASTICS INDUSTRY

5. FEED STOCK SUPPLY

COMPANY PERFORMANCE

RESIN COMPANIES REPORTING POOR PERFORMANCE

IN 2001 FOR CHEMICALS AND POLYMERS

z ADDITIVES AND FILLERS

z END USE MARKETS SERVED

z SUPPLY/DEMAND

z RELATIVE PROFITABILITY

POLYETHYLENE SUPPLY CHAIN

DISTILLATION UNITS

Naphtha Ethane Propane

z ADDITIVES AND FILLERS

z END USE MARKETS SERVED (APC)

z SUPPLY/DEMAND

z RELATIVE PROFITABILITY

POLYPROPYLENE SUPPLY CHAIN

DISTILLATION UNITS

Naphtha, Propane, etc.

Ethylene

POLYMERIZATION UNITS FABRICATION PLANTS

PROPYLENE MARKETS

5.6%

51.2 MM TonsTOTAL - 2000

11%

Percentage of Total

Production 2000

PRODUCT

(1) Petroleum Technology Quarterly 2001, page 132

z PRODUCT TYPES

z TYPE RUBBER

z TYPE PLANT

z ADDITIVES AND FILLERS

z END USE MARKETS SERVED

z SUPPLY/DEMAND

z RELATIVE PROFITABILITY

POLYSTYRENE SUPPLY CHAIN

1. THE ECONOMY IS IMPROVING

2. TO IMPROVE PROFITABILITY

A. REDUCE OVERCAPACITIES

A. SHUT DOWN NON-COMPETITIVE PLANTS

B. BUILD ONLY LARGE ECONOMICAL

PLANTS BASED ON GOOD MARKET RESEARCH

B. SHIFT PRODUCT LINES FROM SPECIALTIES

TO BASE GRADES PLUS ADDITIVES

REGIONAL MARKET DEMANDS

BUSINESS ETHICS