CAUTIOUS OPTIMISM Despite a host of issues to tackle that range from marine waste to multiple forces majeures at materials suppliers, the European plastics industry approaches K 2016 in a good state of health and with cautious optimism. It could even be that something good could come out of the ongoing migrant crisis, as thousands of well-qualified people arrive in Europe in search of new lives and new jobs. But there are still many hills to climb.
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he plastics industry consultancy Applied Market Information (AMI) said recently that the European plastics industry “finds itself in another period of upheaval and change as it struggles to pull out of the stagnation caused first by the Great Recession in 2008-2009 and the subsequent Eurozone crisis in 2012-2013.” The volume of polymers consumed in 2014 was still some 10 per cent below that used in 2007. Growth is coming back, albeit slowly. AMI reckons that, given the cautious outlook for most European economies, polymer demand over the longer term is expected to average a rate of just over 1 per cent per year up to 2019. As has been the trend for several years, recent demand has been stronger in central and eastern Europe compared with western Europe. Most of the countries in the East now have a polymer demand well ahead of where they were in 2007, AMI noted. “The countries of Central and Eastern Europe continue to offer the best prospects for growth in the European plastics industry, although the smaller economies remain vulnerable to external shocks,” it said. 26 Industry Europe
Supply side is content Overall, polymer producers in Europe appear to be upbeat. At Borealis, for example, which made record profits last year, CEO Mark Garrett says integrated polyolefin industry margins were at historic highs. “Despite lower feedstock costs, polyolefin prices did not retreat to the same extent driven by a tight market as a result of solid demand combined with a supply shortfall, in particular resulting from unplanned production stops,” he says. “In addition, imports of polyolefins into Europe have been uncompetitive following the weakening of the Euro. We expect this situation to ease in 2016, but we believe the integrated polyolefin industry margin will be solid.” At BASF, senior VP for Performance Materials Europe Melanie Maas-Brunner says: “Overall, we look positively at the current state of the European plastics industry. We have seen pleasing business growth in all our segments in 2015 and we are optimistic that those who have the right technologies, people and facilities globally will stay successful. We expect more demand from industries such as medical, transportation as well as from consumer
