Global Propylene Market 2016-2020
Propylene is produced through traditional processes like steam cracking and fluid catalytic cracking (FCC). It is obtained as a byproduct of the steam cracking process of natural gas liquids and naphtha that is used for the production ethylene and from gasoline-producing refinery through the FCC process. Propylene and its derivatives are used in industries such as construction, automotive, furniture, decorative molding, and others.
Technavio’s analysts forecast the global propylene market to grow at a CAGR of 5.65% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global propylene market for 2016-2020. To calculate the market size, the report considers the sales volume of downstream propylene derivatives like polypropylene, propylene oxide, acrylonitrile, cumene, acrylic acid, and others.The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Propylene Market 2016-2020
Technavio recognizes the following companies as the key players in the global propylene market: BASF, Dow Chemical, ExxonMobil Chemical, INEOS, and LyondellBasell Industries.
Other Prominent Vendors in the market are: DuPont, Sumitomo Chemical, Saudi Basic Industries, and Chevron Phillips Chemical.
Commenting on the report, an analyst from Technavio’s team said: “Growing preference for sustainable products will be a key trend for market growth. According to a European Commission survey, 80% of the consumers in Europe prefer buying products that have minimal impact on the environment. Bio-polypropylene is already used extensively as a packaging material for making beverage bottle closures. Due to the growing consumer inclination toward bio-based products, food and beverage manufacturers are increasingly focusing on using bio-polypropylene as a packaging material. It is lightweight and has less wall-thickness capabilities, which helps in producing more finished goods using less raw materials.”
According to the report, increase in demand for polyurethane will be a key driver for market growth. Polyurethanes are made from propylene oxide and are used in sealants, thermal insulators, and flooring materials that are used in industries like packaging, automotive, footwear, furniture, and construction.
Further, the report states that propylene is derived from heavy feedstocks, which is derived from crude oil. Thus, the price of propylene depends on global crude oil prices. Vendors face challenges in areas such as the supply of raw materials, fluctuation in demand, and pricing volatility. Environmental concerns regarding the production of propylene derivatives of crude oil will lead to a decline in their consumption. Oil price fluctuation affects the production costs for many chemicals that constitute the downstream segment for petrochemicals. A continued oil price recovery will lead to the use of naphtha instead of ethane as a feedstock. More propylene can be produced from naphtha-based steam cracking process. Hence, propylene producers in economies such as China will increase the use of this method. Higher grades of ethylene can be produced from naphtha steam cracking, which also leads to the production of large amounts of propylene.
BASF, Dow Chemical, ExxonMobil Chemical, INEOS, LyondellBasell Industries, DuPont, Sumitomo Chemical, Saudi Basic Industries, Chevron Phillips Chemical.
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