HOUSTON, Texas (July 30, 2012)—Demand for ethylene-propylene will rise at a rate of nearly 5 percent for the next four years, according to a recent study from IHS Chemical.
The study, titled IHS Chemical Ethylene-Propylene Elastomers CEH Marketing Report, said demand is expected to rise from 1.2 million metric tons to 1.5 million metric tons by 2016.
EP has been most commonly used automotive parts, mainly radiator and heater hoses, belts, weather stripping, seals, mats, brake parts and tubing, as well as single-ply roofing.
“Increasing global demand for EP elastomer products is good news for the U.S. chemical manufacturers, at least in the short term,” said Emanuel Ormonde, senior analyst for IHS Chemical.
One of the largest markets looking for EP is the Asian market, according to IHS. Growth is also expected to be seen in the China market at a rate of more than 11 percent annually, while India is expected to grow at a rate of more than 10 percent annually.
While the U.S. is still leading the way in terms of consumption, growth is expected to be around 3 percent annually, according to the report.
IHS Automotive also stated they expected sales for light vehicles to increase by 28 percent, which will equal more than 21 million vehicles, according to Pierre Corriveau, director of IHS Automotive.
For more information on the EP report, email [email protected]