Growth in PP Compounds Driven by Engineering Developments

The third edition of “The Global Market for PP Compounds,” from U.K-based AMI Consulting sees strong growth for PP compounds, driven by engineering developments in automotive and electrical appliances.

According to the July 2018 study, the automotive industry is aiming to reduce weight and increase fuel efficiency as well as wrestling with how to adapt to a market that is experiencing exceptionally fast growth in hybrid and electrical vehicles. The study also attributes the considerable growth in demand for PP compounds to improved properties, which have enabled them to displace metal in semi-structural applications like instrument panel carriers, door panels and front-ends.

The market is segmented by region, product family and applications in this study. Applications for the automotive segment, the largest market for PP compounds, are split into interior, exterior and underhood. The study quantifies demand for PP compounds by OEM and provides an analysis of the industry’s supply structure and up-to-date information on the world’s largest producers of PP compounds.

Also examined is the rate of structural changes in the industry, which has seen a rising number of mergers and acquisitions in the last year, as well as investment in new capacity as PP compounders aim to both keep pace with growing local demand and internationalize their businesses. Among recent investors are: Borealis/Borouge, Celanese, GS Caltex, Kingfa, LyondellBasell, Mitsui, SABIC and Washington Penn.  

Global demand for PP compounds in 2017 was led by Asia (47%), followed by Europe (28%) and the Americas (25%). The report, which provides both current and forecast information, is intended to support the strategic decisions needed by participants to ensure they keep abreast of development within this fast-changing industry.  In addition to the first two editions of this study, published in June 2014 and July 2015, AMI Consulting’s other multiclient studies in the arena of PP compounds, include the 2017 Global Market for LFT Compounds and the 2016 European Market for PP Compounds.