Mexican market for LLDPE set to grow at strong rate over coming years, sales set to equal LDPE in 2012, market researcher forecasts; imports of LLDPE to rise as demand outpaces capacity, LD/LLDPE deficit reaches 600,000 tonnes in 2012

Alison Gallant

Alison Gallant

Nov 25, 2011 – Business Wire

DUBLIN , November 25, 2011 (press release) – Research and Markets (http://www.researchandmarkets.com/research/df44e9/mexico_petrochemic) has announced the addition of the "Mexico Petrochemicals Report 2012" report to their offering.

Business Monitor International's Mexico Petrochemicals Report provides industry professionals and strategists, corporate analysts, petrochemical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Mexico's petrochemicals industry.

The Mexican petrochemicals industry is preparing for a significant expansion of capacities, but will remain a net importer over the long-term, according to BMI's latest Mexico Petrochemicals Report. On the domestic market, sales of LLDPE are set to equal LDPE in 2012. LLDPE is becoming more popular than LDPE due to its higher tensile strength and puncture resistance, allowing for thinner films with similar durability. This ultimately reduces costs, although it is harder to process and does not have the clarity that some consumers desire. Packaging is the main market for LLDPE, particularly in food packaging, and has over-taken LDPE in terms of market size in the US market. LLDPE is set to grow at a strong rate over coming years. With LLDPE capacity not set to rise in line with increased demand, imports are set to rise. BMI forecasts that Mexico's deficit in polyolefins will reach 2.2mn tonnes in 2012, with the HDPE deficit reaching 800,000 tonnes, LD/LLDPE deficit at about 600,000 tonnes and the PP deficit reaching 800,000 tonnes.

Reducing dependence on imports is only likely once the Ethylene XXI project, based on 1.05mn tpa ethylene capacity, 750,000tpa HDPE and 300,000tpa LDPE capacities, goes into commercial operation in 2015. In April 2011, Braskem-Idesa, a joint venture between Brazil's Braskem and Mexico's Idesa, awarded a contract to Technip to build its world scale ethylene plant at Ethylene XXI. Construction began in October 2011 and is scheduled for completion by end-2014. Forming the core of a petrochemicals complex at Coatzacoalcos, the US$1bn plant will use ethane feedstock. However, Mexico will remain a net importer of polymers over the long-term.

Companies Mentioned:

Alfa
Grupo Idesa
Mexichem
Pemex/Pemex Petroquimica (PPQ)

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