Townsend projects just under 1% growth in polypropylene resin usage

Townsend Solutions recently published its 2009 global polypropylene study with breath-taking results.

Global consumption of polypropylene in 2008 was 45.5 million tonnes – that was down 1.4 million tonnes from 2007. With the global economy starting to recover in the second half of 2009, the polypropylene usage level will grow less than 1% in 2009 and finally reach 2007 usage levels sometime in 2010.

Townsend forecasts global polypropylene usage growth will average 3.7% per year for the next five years. During this same 5-year period over 10 million tonnes of new polypropylene capacity is expected to come on stream, according to supplier announcements. The additional production will result in a period of historically low capacity utilization levels of below 80% by 2012.

Anyone planning to build a new polypropylene plant or currently producing polypropylene needs to know why, where and how much their markets will be impacted. If you are manufacturing, converting or buying and selling polypropylene resin, Townsend’s report will help you understand what to expect so you can prepare yourself for a long period of oversupply.