Chlorinated Polyethylene Resins and Elastomers (CPE) Market Challenges and Opportunities Report
Growing demand for chlorinated polyethylene resins and elastomers in impact modification application is expected to drive the market growth. Impact modification is the largest application of CPE in terms of consumption. It is widely used for impact modification of PVC for fence, deck, window profiles, pipes and vinyl siding.
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CPEs are added into formulations of PVC, PE and PP plastic products to improve impact resistance, low temperature performance, welding strength, and weatherability. In addition, growing demand from flexible sheetingelectrical wires and cables, roofing applications and rubber products for seals and shoe soles.
Flexible sheeting industry is experiencing high growth in Asia Pacific region due to growing construction and electrical industries. These two industries are driven by changing lifestyle and rising disposable income.Further, rising demand from automobile hoses and industrial hoses is expected to fuel the chlorinated polyethylene resins and elastomers market growth. Owing to properties such as ozone resistance, chemical resistance, oil resistance and temperature resistance, CPE has become ideal choice for applications such as oil tubes, power steering tubes, delivery tubes of cooling fluids. It can be also used for vent and vacuum tubes in automotive. Automobile industry is driven by global demand for various types of automotives for variety of applications. Industrial hoses are used for chemical delivery and oil delivery in difference machineries of manufacturing plants.
However, rising crude oil prices and hence volatility in raw materials prices are expected to hamper the market growth for chlorinated polyethylene resins and elastomers. Polyethylene is manufactured from crude oil derivatives and is subjected to availability and price variations. In addition, high cost of processing to develop the application specific elastomer or resin is expected to hamper the market growth.
Development of new applications in healthcare and pharmaceutical are expected to provide opportunities for the players in the market. Due to non-hazardous nature of chlorinated polyethylene resins and elastomers, it can be used for manufacturing plants of pharmaceuticals and healthcare industry.
Asia Pacific was largest market for chlorinated polyethylene resins and elastomers in terms of consumption. China accounts for largest share in the global market in terms of production and consumption. Most of CPE in China is used for impact modifier and hoses application. Asia Pacific was followed by North America where the U.S. was the largest consumer. Demand from Europe and Rest of the World is expected to grow at moderate pace.
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Global chlorinated polyethylene resins and elastomers market is highly concentrated with few players dominating the market. Most of the players have their manufacturing plant in China and threat from Chinese players is moderate due to high cost of processing.
Key players in Chlorinated polyethylene resins and elastomers market include the Dow Chemical Company, Sundow Polymers Co. Ltd., Lianda Corporation, Du Pont, Novista - Sanyi Chemical, WeifangPolygrandChemical Co.Ltd., Shandong SanyiIndustrial Co. Ltd., Cevo Industry Company Ltd. among others.
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