World demand for PE, PP and PVC in 2021 is estimated at 115 million, 85 million and 49 million metric tons, respectively, Braskem noted, referring to IHS projections.

Between 2020 and 2025, global demand for PE, PP and PVC is expected to grow 4.2, 4.7 and 4.5% per year, respectively, also according to IHS.

Braskem explained that this is due to the solid dynamics of the final market, the growth of the global Gross Domestic Product (GDP) and spending on infrastructure and construction projects.

For Braskem, polymers are likely to continue to replace traditional materials, such as aluminum, steel, wood and glass, in applications where they can provide economic advantages and better performance.

Green PE and green ethylene could represent a $10 billion addressable market by 2025 and $15 billion by the end of 2030, according to IHS.

This represents growth of 18.5% per year between 2025 and 2030 for green PE and green ethylene, which together would represent approximately 5.0% of the total PE and ethylene market, including fossil and biobased products in 2030.

World demand

Latin America and the United States are Braskem’s markets of origin, but the company is also competitive in exports to Asia.

In particular, Latin America has a high potential for growth in demand for polyolefins, due to its low rates of per capita consumption of plastics.

While market participants have announced a strong pipeline of supply additions, Braskem believes that many of these projects will be delayed and cancelled, as has been the case for the past decade, resulting in the industry enjoying high operating rates and solid margins.