The automotive sector played an important role in many plastic markets in 2015. However, it will be more shining in 2016 and later, or according to sources said on last Thursday (18/2/2016): The automotive sector continues to burn bright for 2016!
Meanwhile, the European automotive industry has developed stronger and stronger, and it continues to boost demand for a number of petrochemicals used in car manufacturing. Recently, the European Automobile Manufacturers Association published that new car registrations posted growth for the 29th consecutive month. Compared to January 2015, the registrations during the month grew 6.2%, totalling 1.061.150 units. Both Spain and Italy posted double-digit growth in January, while other countries France, Germany and the UK are also showing growth.
The demand for associated European petrochemicals markets has been helped boost with this ongoing upward trend. Particularly, polymethyl methacrylate (PMMA), the primary use of which is in car headlights and taillights, can get the benefits obviously. PMMA market players have proclaimed the automotive sector has fuelled demand at a time when other sectors are not doing so well, mainly in extrusion.
The demand from the automotive sector resulted in European PMMA producers stating a decent level of growth overall for 2015. A report said that the demand from this sector increased by 20% in 2015, and it is expected to continue in 2016. With deman interest still high, a PMMA distributor said European producers are working hard to remain competitive to maintain market share in a sector that continues to grow.
Meanwhile, demand levels in the European polyacetal (POM) and polybutylene terephthalate (PBT) markets, for which the automotive industry is the largest end-user, also remain healthy. One PMMA and POM distributor said it continues to see an increase in automotive demand, particular from UK car manufacturers Jaguar and Nissan. This is a necessary boost for POM, which is a market where material is in abundance.
Some derivative POM sectors, for example cables, are performing poorly and have been for some time. The strong performance in the automotive sector is more than welcomed by POM producers and has helped to balance overall demand.
For PBT, which is used to make car dashboards and rear view mirrors, better automotive demand in Europe also looks to be a beacon of prosperity in 2016. And “robust demand in automotive on our side – at least in Europe and America” is still here!
The European market survived the Volkswagen diesel emission scandal that broke four months ago, which at the time was perceived by some to be a big threat to the European market with fears that buyers would look outside of Europe.
So far this has not happened and car registration figures continue to grow. At present, the upward trend appears to be continuing to drive demand and help alleviate some of the excess material sat on some of the associated markets.
(According to ICIS News)