Issue 2/2019 - Global Chemicals Quick Review

Global demand for petrochemicals will strongly drive oil demand growth

The International Energy Agency (IEA) said rapid growth in emerging economies such as India and China is and will continue to drive demand for
petrochemicals.
Oil demand in the transport sector will slow until 2050, driven by the increase in electric vehicles and more efficient internal combustion engines, but this will
be offset by strong growth in oil demand for petrochemicals.
Petrochemicals will account for more than one-third of global oil demand growth by 2030 and nearly half
of global oil demand growth by 2050, according to the IEA.
In 2050, global demand for petrochemical feedstocks will grow to nearly 18 million b/d
.

The U.
S.
chemical industry will continue to grow in the new year

With feedstock advantages outweighing economic uncertainty, the U.
S.
chemical industry will continue to grow
in 2019.
The American Chemistry Council (ACC) expects U.
S.
chemical production to grow 3.
6 percent in 2019 (from 3.
1 percent in 2018).

The competitive advantage of shale gas is a major factor
in keeping the outlook positive for the U.
S.
chemical industry.
Although U.
S.
chemical manufacturers experienced higher oil and gas prices in 2018, they will continue to enjoy cheaper and more abundant feedstocks and energy
than their foreign competitors.
ACC predicts that improvements in key end markets such as housing will also spur growth in U.
S.
chemical production in
2019.
U.
S.
housing starts were 1.
27 million units in 2018 and 1.
34 million units in 2019, and each new housing start represents $15,000 in chemical demand
.

The global bioplastics market will grow rapidly in the next five years

At the 13th European Bioplastics Congress, the annual market data update presented by the European Bioplastics Association confirms that the global bioplastics industry is growing
steadily.
"The global bioplastics market is expected to grow by around 25% over the next five years, driven by increasing consumer and brand demand for sustainable products, stronger policy support for the bioeconomy from governments, and the bioplastics industry's ongoing efforts to develop innovative materials
with better performance and new capabilities," the European Bioplastics Association said.
"Global bioplastics production capacity will increase from about 2.
1 million tons in 2018 to 2.
6 million tons
in 2023.
In terms of application areas, packaging is still the largest application area of bioplastics in 2018, accounting for about 65% of
the bioplastics market.
In addition, bioplastic materials have been used in many other fields, including textiles, consumer goods, automotive, agriculture and horticulture
.

The global marine lubricants market presents both challenges and opportunities

Caroline Huot, head of global lubricants at Cockett Marine Oil Group (CMOG) at ICIS Industrial Lubricants Asia in Singapore in December 2018, said the global marine lubricants market will face some significant challenges in the coming years, including regulations to reduce sulphur levels in marine fuels and enforce environmentally acceptable products, continuous improvements in equipment design, and pressure to reduce costs while increasing operational efficiency
.
Nevertheless, this market is growing and will continue to provide opportunities
for new and existing suppliers.