The current balance between supply and demand in Asia POM will no longer exist
According to a recent report by ICIS, many Asian POM projects will be put into production in the next two years, and production capacity will increase by about 35%. However, the global economic downturn has caused demand growth to be much lower than expected, only 4% to 5%. Due to the fact that the growth in demand is far behind the speed of expansion, the current balance between supply and demand in Asia POM will no longer exist. According to industry estimates, the current annual production capacity of polyoxymethylene in Asia is about 810,000 tons, and the annual demand for polyoxymethylene in the region is close to 800,000 tons. On the surface, supply and demand are relatively balanced. In recent years, people have been optimistic about the prospects for the demand for engineering plastics. In particular, China has become the world's largest auto market, prompting the Asian region to increase investment in polyoxymethylene projects. Judging from the projects that have been announced, in the next two years, the region will have about 280,000 tons/year of new POM capacity, which means that the capacity will increase by 35%. These include: China's Henan Kaifeng Longyu Chemical Company's new 60,000-ton/year plant will be put into operation in 2013, when the company's polyformaldehyde production capacity increased to 100,000 tons / year. The new 45,000 tpa/year plant of Thai POM in Mataho, Rayong, is expected to be put into operation in the second quarter of next year. The company has a 55,000 t/a polyoxymethylene unit at the same location. Saudi Arabia’s state-owned methanol company plans to complete construction of Jubail’s 50,000-ton/year polyoxymethylene plant next year. The world’s largest polyoxymethylene producer Japan Polyplastics Co., Ltd. currently has a production capacity of 213,000 tons/year. It is expected that by the beginning of 2014, the company’s new 90,000-ton/year plant will be put into operation in Kuantan, Malaysia. The plastic company's total POM production capacity will exceed 300,000 tons/year. South Korea Engineering Plastics Corporation has also built a 35,000-ton/year plant in Ulsan. By the first quarter of 2014, the company's polyformaldehyde capacity will be increased to 100,000 tons/year. When these devices were launched, the growth rate of the automotive and electrical and electronic industries in Asia, especially in China, was very encouraging. But then the global economic growth rate slowed down obviously. There are still many uncertainties and consumer confidence is obviously insufficient. The debt crisis in the Eurozone is heavy. The economic recovery in the United States is sluggish and drags down the Asian economy. The downstream demand is fierce. . Based on the overall economic growth in Asia, the annual growth rate of POM is 4% to 5%. The growth of demand is far behind the speed of expansion. The oversupply will be unavoidable and it will be difficult to eliminate in the short term. All this will undoubtedly cause the industry to be optimistic about the consumption of POM. CNC Machining,Machining Parts,Pipe Connector SOMAX ENTERPRISE CO., LTD. , http://www.tzdiecast.com