The future of LDPE market

 
Low density polyethylene (LDPE), is a plastic manufactured through a high pressure method. The primary markets for this plastic include films, carrying bags, and sacks. According to Ceresana Research (www.ceresana.com), about 67% of global LDPE demand falls into these categories. Some examples of these applications include agricultural, multi-layer, and shrink films, as well as reinforcements for levees. LDPE, which is soft, ductile, and flexible, is additionally utilized for strong, elastic goods, such as screw caps, lids, and coatings.

Since it was first produced in 1939, LDPE production steadily risen as the material is easily processed into films and exhibits particularly excellent rheological characteristics. To date it is still preferred in many regions despite competition from newer polyethylene grades like HDPE and LLDPE. However, the trend of substituting LDPE with other polymers is declining again throughout industrialised nations. Opportunities for LDPE can be seen, for example, in coatings and packaging for medical products.

Whilst LDPE prices have fluctuated in the past, and fallen by as much as 30% in certain regions due to declining demand in Western Europe and North America, there is optimism that demand will pick up starting this year, according to Ceresana.  The research group sees the Asian Pacific region as the most important LDPE market and will be able to increase its share of global consumption to more than 39%.  The Middle East is also continuously expanding LDPE production with capacity increases of around 3.5 million tonnes planned by 2014.

Asia as largest consumer of LDPE

With global demand for LDPE approaching maturity, growth is not expected to be as strong as in the past. However, with most industries increasing their production, global demand for LDPE is expected to grow at around 2% annually until 2020, according to a report by GBI Research (www.gbiresearch.com). In its report, "The Future of Low density Polyethylene (LDPE), Market Forecasts and Growth Trends to 2020 - Packaging Applications Driving Demand Globally", GBI provides an in-depth analysis of the global LDPE industry. The research presents detailed analysis and forecasts of the major economic and market trends affecting the LDPE markets in major regions of the world.

The same report states that demand for LDPE is highest in Asia with China being a major demand driver for LDPE in the world. The demand in advanced countries such as Japan is also high but is stable. India and China have considerable consumption potential because of their large populations.
 
The gross domestic products (GDPs) of countries such as China and India in Asia are growing at higher rates than the global GDP growth rates. The key LDPE-consuming industries are also growing in these regions. The packaging sector is set to grow continuously in the forecast period in these countries supported by the growth in the retail industry. With the rise in consumption, the durables industry is also set to grow. The construction and electrical industries will also follow the industrial growth trends.

"The Asian Pacific region is seen as the most important LDPE market."

The report also indicates that LDPE plants across the world use different technologies for production.
LyondellBasell (Lupotech) technology is the most used technology by LDPE plants globally. Under the trademark Lupotech, LyondellBasell offers high-pressure tubular and autoclave process technologies for the productiEntrainement Nike