The forecast follows a disappointing performance in 2003

The forecast follows a disappointing performance in 2003

The polypropylene sector looks set to move forward this year, following a disappointing performance in 2003. West European consumption of polypropylene increased by just 2% last year, compared with 7.4% in 2002.

Roger Green, senior consultant with Nexant Chem Systems, attributes this lower rate of growth to the general economic malaise in Europe, and particularly in Germany, which is the major user of PP. For the period 1998-2003, the consultancy estimates average annual growth in West European PP consumption of 3.7%.

An important ongoing issue for the PP sector is a growing shortage of propylene in Europe, due to lack of investment in new cracker capacity. Green said: “As propylene gets tighter, PP costs will have to rise. This may encourage a switch from PP back into other competing polymers.”