Chemicals

Thailand - Outlook for the local plastics industry improves

Source: Thai News Service, 27 August 2009

According to the Petroleum Institute of Thailand (PTIT) research, plastic product growth contracted by 5% in the first half, reflecting poor purchasing power of consumers. Ready-to-eat food products have played a big role in lifting plastic demand, as more consumers cut expenses by eating more meals at home. However, the trend in orders is found to start to rebound. The outlook for the local plastics industry is improving in the second half of 2009, driven by the demand for plastic packaging in the food and electronics industries.

The packaging businesses accounted for 40% of the local plastics industry, with 12% shared by electronics, 7% by automobiles and parts, and 6% by construction materials. The total market was worth THB370 billion (US$10.87 billion) in 2008 with volume of 3.25 million tons.

Asia - Rubber prices to rally on rising domestic car sales

Source: Industry Updates, 03 September 2009

According to the largest Japanese commodity trader, Marubeni Corp, Rubber prices are expected to climb as much as 19% by the end of 2010 as rising vehicle sales in China boosts demand. The commodity currently trades US$2.10/kg, and will probably trade between US$2 - US$2.50/kg in the second half of 2009.

The February-delivery rubber traded at JPY214.5/kg (US$2310/ton) on the Tokyo Commodity Exchange on 31 August 2009, the highest level for the most-active contract since Oct 8.The natural rubber demand in China is expected rise by about 100,000 tons to 2 million tons in 2009, representing 20% of global consumption. China, the biggest natural rubber consumer, will increasingly rely on imports to meet rising demand arisen from rising vehical sales, because of a shortage of suitable land to boost domestic output.

China - MIIT prepared to rein in local chemical industry

Source: Asia Pulse, 04 September 2009

China's Ministry of Industry and Information Technology (MIIT) said the chemical industry is suffering from chronic overcapacity of some of chemical products due to a malfunctioning industrial investment structure. The government macro-control measures would be introduced to rein in the excessive growth if the market mechanism fails to cure the problem.

The National Statistics Bureau points out that over 60 per cent of some 1,000 registered chemical products saw the price drop or flatline in July 2009. The 81.4% of the registered products have experienced a year-on-year drop or remained unchanged on prices, when compared with the previous month figures. The investment inflow into the chemical industry grew by 29.71% in July 2009, month on month basis, with a segment breakdown of mineral acids (43.37%), chemical fertilizers (36.23%), pesticides (40.66%) and rubber products (38.18%).

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