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For this year's annual resins market update, Coatings World asked a panel of experts to address key issues facing the market including the economy, new technology and strategies for moving forward in 2010. The panel is made up of individuals from some of the world's largest and most diverse resins suppliers including BASF, Eliokem, DSM NeoResins+ and Celanese.
March 29, 2010
By: Tim Wright
How did the resins market perform in 2009? How did this compare to 2008 and what are your predictions for this year? Uwe Liebelt, group vice president, dispersions and pigments, BASF North America: The market for resins in 2009 was strongly influenced by the respective markets in which the end products are used. Products commonly used for printing, packaging, construction and general industrial applications were subject to the continued weak market conditions in these segments. Some of these markets were temporarily down as much as 40 percent or more in 2009 versus 2008. Others such as the do-it-yourself (DIY) market segment didn’t suffer that much because customers changed their consumption pattern. For example, instead of buying or building new homes, money was spent on repairs and renovations. We definitely have seen the demand side improving during the first months of 2010 versus 2009. It seems as though this improvement goes beyond a simple refilling of the pipeline and we are confident that it will continue throughout 2010. However, different market segments will recover at different paces. In some areas, such as the publication sector, a significant upswing is aggravated by structural issues in the industry. Whereas areas like packaging might continue to benefit from an increase in online shopping. Steve Wilson, coating resins marketing manager, Eliokem: The resin market began to rebound in 2009 likely to a level of 85 to 90 percent of the previous year. Some of this was due to the manufacturer’s low inventories at the end of 2008. It is likely 2010 will resemble performance of 2009 because customers are watching inventory levels and monitoring working capital. Also, the construction industry is still lagging. Jared Elliott, marketing manager, paints and coatings, Celanese Emulsion Polymers: The resins market mirrored the overall economy. North American GDP was down in 2009 over 2008. Our customers in both the paint and adhesives segments saw reduced demand year over year for their goods. Our customers are noting that the downward trend seems to have leveled off and they hope for a stable to slight increase in 2010. Dimitri de Vreeze, business unit director, DSM NeoResins+: In 2009 we saw a decline in the lower end market demand. The crisis forced many companies in the long supply chains of resins to lower their stock levels, which resulted in lower demand for resins producers. Overall there was a decline of 10 to 30 percent versus 2008, depending on region, length of chain and type of end-market. Our outlook for 2010 is cautiously optimistic. Some of the major end markets for resins are down by five to 20 percent, so we don’t expect that the resins volumes will return soon to the levels of 2007.
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