News for the plastics and rubber industry. Macplas
Marketing Tuesday, 21 March 2017

Sales of PVC are strong, but PP and PS do less well

In 2016, sales of PVC in the US and Canada rose considerably (+4.4%, taking the total volume to around 7 million tons), while sales of PP and PS saw less marked increases. These figures are among data released by the American Chemistry Council, which, for these materials as a whole, has estimated growth rates of 3.7% and 5.7% for the domestic and export markets, respectively.

With regard to applications, supplies of PVC for pipes and conduits - this sector accounts for 45% of domestic consumption - are reported to have increased by 5%, taking the volume over the 2 million ton mark. Other strong sectors were film and sheets (+16%), doors and windows (+17%), and fences and covers (+18%). Still with reference to 2016, over 63% of demand for PVC came from the construction sector: construction sites increased by 5% in 2016, an increase that resulted in a total of almost 1.2 million new buildings constructed. This was therefore the seventh consecutive year of growth for the sector, coming in the wake of the 2005 peak when over 2 million buildings went up and the subsequent crash, in 2009, to just 554,000. This positive trend in the building sector is underpinned by interest rates, now at a historic low, which have encouraged the purchase and renovation of real estate.

Conversely, sales of PP were weak (-2.5%) last year, whereas exports, mainly to Nafta countries, soared (+114%). The only positive result on the domestic market concerned the moulding of containers in PP (sales of which were up by 2.4%), whereas sales of injection-moulded household goods (-8%) and extruded film and filaments (-9% and -12% respectively) dipped.

Finally, looking at the performance of PS, turnover (excluding PS foam) in 2016 increased by 0.2%, resulting in a total volume of almost 2 million tons. Food packaging, which makes up around 63% of the local market, was the leading sector (+1.3%). However, competition from materials like PP and PET is fierce, and they are actually often preferred as they cost less and are easier to recycle.

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