Polycarbonate (PC) manufacturers are closely monitoring market trends, as demand is expected to grow at an average annual rate of around 8% through 2011. Equipment utilization rates are anticipated to remain near 90%, reflecting strong industry activity. With global demand exceeding 200,000 tons annually, many producers are accelerating the construction of new production facilities to meet rising needs.
Roger Rumer, vice president of Bayer MaterialScience, highlighted that the surge in PC demand is largely driven by increased consumption in emerging markets. It's reported that approximately 300,000 tons/year of new PC capacity will come online between 2007 and 2008. Despite this growth, Rumer remains cautious about the industry’s profitability. He pointed out that high prices for key raw materials like benzene and phenol—currently near historical peaks—are a major challenge. Additionally, unplanned shutdowns of phenol plants have tightened supply and pushed prices higher.
The Asia-Pacific region continues to lead in PC demand growth, with an average annual increase of over 10%. In North America and Europe, growth is expected to be more moderate, around 5% to 6% per year, with Western Europe showing slower expansion compared to Eastern Europe.
Bayer MaterialScience plans to launch a second PC production line in Shanghai with a capacity of 100,000 tons/year by the end of 2008, pending favorable market conditions. Meanwhile, SABIC Innovative Plastics is evaluating potential PC production projects in Asia. The company, through its subsidiary SABIC Kayan, is already building a 260,000-ton/year facility in Al-Jubail, Saudi Arabia, set to start operations in 2009. A senior executive noted that Asia could be a future focus for new investments.
In South Korea, Hunan Petrochemical Company is completing a 65,000-ton/year PC plant in Yeosu by the fourth quarter of 2008. The project, costing $192 million, marks the company’s first dedicated PC facility.
Industry experts note that construction, automotive, and multimedia sectors remain key drivers of PC demand. Additionally, PC/ABS blends used in green buildings and recyclable consumer products are gaining traction. Demand for flame-retardant materials in the IT sector is also strong, signaling continued growth in specialized applications.
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