ITALY
1993: Plastics raw materials without growth / Decrease in thermosets / 880,000 tonnes PP
The annual study issued by Plastic Consult on the Italian market trend outlines that for the first time in over ten years the Italian plastics demand showed no growth during 1993. This is hardly surprising if the general state of the economy is taken into account. The year 1993 has been very disappointing for the Italian economy, with all major macroeconomic indicators (GNP, industrial production, rate of investment, employment etc.) recording a negative growth. Despite this gloomy scenario, the plastics industry fared once more much better than the average maintaining its previously reached consumption level.
The first nine months had a particularly unfavourable trend and let foresee a net consumption decrease for the whole year. The last quarter, however, showed a partial recovery in the plastics manufacturing activity (though starting from a very low level) and the year closed better than expected.
Several key sectors (automotive, agriculture, building and construction, office machine and telecommunications) are in a recessive phase. The depressed status of the economy brought to the surface many pre-existent structural problems of these end-using industries. And since they are structural and not contingent, they will be hardly solved in the short term. Overall plastics demand remained steady with respect to 1992, that is at over 4.5m tonnes. This result is, however, the average between a small growth in thermoplastics (+0.5%) and a definite decrease in thermosets (-4.9%)
Total plastics production also remained practically unaltered, at 3.1m tonnes, while imports decreased for the first time in over ten years (-1%). Imported materials still represent, however, about 55% of total demand. Export shrunk by about 3.7%, thus net imports continued to grow. It must be noted that the trade deficit is more than compensated by the existing net export flow for both manufactured goods and processing equipment. The overall trade balance still remains positive.
The major five thermoplastics (namely LDPE/LLDPE, HDPE, polypropylene, PVC and polystyrene) account for about 78% of total plastics consumption and 85% of thermoplastics demand. LDPE/LLDPE demand showed a moderate erosion (-2.1%) over 1992, going down to 915,000 tonnes. This was the result of two divergent trends: growth for LLDPE (+7%) and reduction for LDPE (-5%). The best performing sectors for LLDPE which now accounts for about 24% of total low density polyethylene demand, have been once again stretch film and rotational moulding. Most LDPE markets showed at best no growth with bags, agricultural film and cables definitely going down.
HDPE growth (2.2%) must be regarded overall as satisfactory since all negative factors (economic recession, automotive crisis, complete halt of public works ) applying in 1992 did in fact deteriorate over 1993. Applications that contributed largely to this result have been film extrusion but especially a number of injection moulding outlets, such as large articles (pails, bins for municipal solid waste, large crates) and closures for mineral water bottles. Blow moulding outlets showed no growth for the third consecutive year.
Polypropylene continues to be the best performing commodity with a +5% overall growth (+7.1% referred to plastics uses only) and a consumption level of 880,000 tonnes. Practically all applications did well again in 1993, the noticeable exception being automotive. Most of the growth was due to the contribution of extrusion outlets, once again with particularly bright results in bioriented film and thermoformable sheet. Despite the sharp drop recorded in the automotive sector, the total for injection moulding still showed some growth, due to the good development of moulded packaging, household and garden furniture.
A further erosion (-4.5%) was recorded in PVC demand due to both the economic crisis, which particularly affected some important end-uses (building, automotive etc.) and the accelerated substitution rate occurring in packaging outlets. Substantial market shares are being lost to PET in bottles, to PP and PET in thermoformable sheet and to PE and PP in overwrapping film. It must be noted that alternative materials start to be required also in non packaging outlets and total PVC consumption is expected to continue to slowly decline from the current 850,000-tonne level.
Total general purpose and high impact polystyrene demand generally held over 1993. Small market losses were recorded in some outlets (thermoformable sheet, crates, small appliances, cassettes etc.) but they were compensated by equally small growth in other sectors (white appliances, household items, bathroom fittings etc.). Similarly the demand resulted stable for expandable polystyrene, with a slight growth in packaging and a small step backwards in building.
The first nine months had a particularly unfavourable trend and let foresee a net consumption decrease for the whole year. The last quarter, however, showed a partial recovery in the plastics manufacturing activity (though starting from a very low level) and the year closed better than expected.
Several key sectors (automotive, agriculture, building and construction, office machine and telecommunications) are in a recessive phase. The depressed status of the economy brought to the surface many pre-existent structural problems of these end-using industries. And since they are structural and not contingent, they will be hardly solved in the short term. Overall plastics demand remained steady with respect to 1992, that is at over 4.5m tonnes. This result is, however, the average between a small growth in thermoplastics (+0.5%) and a definite decrease in thermosets (-4.9%)
Total plastics production also remained practically unaltered, at 3.1m tonnes, while imports decreased for the first time in over ten years (-1%). Imported materials still represent, however, about 55% of total demand. Export shrunk by about 3.7%, thus net imports continued to grow. It must be noted that the trade deficit is more than compensated by the existing net export flow for both manufactured goods and processing equipment. The overall trade balance still remains positive.
The major five thermoplastics (namely LDPE/LLDPE, HDPE, polypropylene, PVC and polystyrene) account for about 78% of total plastics consumption and 85% of thermoplastics demand. LDPE/LLDPE demand showed a moderate erosion (-2.1%) over 1992, going down to 915,000 tonnes. This was the result of two divergent trends: growth for LLDPE (+7%) and reduction for LDPE (-5%). The best performing sectors for LLDPE which now accounts for about 24% of total low density polyethylene demand, have been once again stretch film and rotational moulding. Most LDPE markets showed at best no growth with bags, agricultural film and cables definitely going down.
HDPE growth (2.2%) must be regarded overall as satisfactory since all negative factors (economic recession, automotive crisis, complete halt of public works ) applying in 1992 did in fact deteriorate over 1993. Applications that contributed largely to this result have been film extrusion but especially a number of injection moulding outlets, such as large articles (pails, bins for municipal solid waste, large crates) and closures for mineral water bottles. Blow moulding outlets showed no growth for the third consecutive year.
Polypropylene continues to be the best performing commodity with a +5% overall growth (+7.1% referred to plastics uses only) and a consumption level of 880,000 tonnes. Practically all applications did well again in 1993, the noticeable exception being automotive. Most of the growth was due to the contribution of extrusion outlets, once again with particularly bright results in bioriented film and thermoformable sheet. Despite the sharp drop recorded in the automotive sector, the total for injection moulding still showed some growth, due to the good development of moulded packaging, household and garden furniture.
A further erosion (-4.5%) was recorded in PVC demand due to both the economic crisis, which particularly affected some important end-uses (building, automotive etc.) and the accelerated substitution rate occurring in packaging outlets. Substantial market shares are being lost to PET in bottles, to PP and PET in thermoformable sheet and to PE and PP in overwrapping film. It must be noted that alternative materials start to be required also in non packaging outlets and total PVC consumption is expected to continue to slowly decline from the current 850,000-tonne level.
Total general purpose and high impact polystyrene demand generally held over 1993. Small market losses were recorded in some outlets (thermoformable sheet, crates, small appliances, cassettes etc.) but they were compensated by equally small growth in other sectors (white appliances, household items, bathroom fittings etc.). Similarly the demand resulted stable for expandable polystyrene, with a slight growth in packaging and a small step backwards in building.
31.10.1994 Plasteurope.com [21134]
Published on 31.10.1994