AMI releases PE film study

Growth in polyethylene (PE) film usage and trade of finished film are dependent on several factors, amongst which is shale development in the United States. This specifically impacts the cost of PE resin as well as cuts energy cost of film production, according to a report by Applied Market Information Ltd (AMI Consulting).

AMI said that North America’s polymer cost base will be comparable to that of the Middle East in the near future. PE film exports from North America may surpass those of the Middle East. And when technological know-how is also considered, polyethylene film producers in the United States are well on their way to becoming global players. At the same time, further investments in the Middle East and Southeast Asia will drive the growth of PE film production.

In 2013, one-third of world production of PE film came from Northeast Asia, according to the report. NAFTA accounted for 17% of market share, and Western Europe, 15%. In four years’ time, Northeast Asia, including China, is expected to have a market share of more than 35% and NAFTA will maintain its share. Western Europe will see its market share drop in light of the economic situation in some member countries.

On the other hand, the projection for the Middle East is positive. Market share will increase by 10% or more annually.  Trade volume between inter-regions has amounted to 3 million tonnes annually, with Northeast and Southeast Asia, accounting for some 50% of this volume. By 2018, some half million tonnes more annually is expected to be traded, driven by increased volumes of film on the reel rather than bags and sacks.  In terms of applications, stretch films will show the highest growth rate, and demand for bags and sacks, agricultural films, and shrink films will also increase.

Summary by Film Appiclation, 2013