Huntsman International Competition
Now Viewing Huntsman International's competition in: Plastic Resins & Synthetic Fibers (primary)
Recent Developments
Saudi King Pledges Higher Oil Production - In June 2008, Saudi Arabia said that it will raise oil production to record levels within weeks. The announcement came as the price of oil, a source of key materials used in plastic resin and synthetic fiber manufacture, topped $140 per barrel for the first time. Industry experts say that members of OPEC generally follow the Saudi lead on raising levels of production, put OPEC's president says that no decision will be made until a September meeting.
Legislation to Reduce Plastic Bag Use Advances - A bill that would institute the toughest litter abatement law for carryout bags in the US was passed by the California Assembly in May 2008. The Plastic Bag Reduction Benchmarks bill would require retailers to charge a per-bag fee if plastic bag diversion and reduction benchmarks for landfills aren't met. Plastic resin and synthetic fiber manufacturers may be negatively impacted if fewer plastic bags are used as a result.
Auto Sales Continue Declining - US new auto sales, a driver of demand for plastic resins and synthetic fibers, fell 10.8 percent in May 2008 compared to May 2007, according to Edmunds.com. Sales of smaller vehicles rose; sales of larger vehicles like SUVs and trucks fell. Auto sales have declined every month in 2008.
Competitive Landscape
Demand depends on the level of manufacture of plastic products, which is closely linked to US industrial production. Because resin manufacture is a high-volume process, the profitability of individual companies depends on operating efficiencies. Large companies have significant economies of scale in production and in the purchase of raw materials. Smaller companies can compete effectively by producing specialty resins and fibers. Many smaller companies buy commodity resins from large producers and rework them into specialty compounds. The industry is highly automated: annual revenue per worker is over $700,000 in large production plants, close to $500,000 in smaller ones.
Full Industry Overview For Plastic Resins & Synthetic Fibers
Plastic Resins & Synthetic Fibers Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US plastics and synthetics, which includes plastic resins and synthetic fibers, is forecast to increase at an annual compounded rate of 7.7 percent between 2007 and 2012.
Plastic & Synthetics Production Growth Volatile
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Good demand for consumer products
- High oil prices hurt profitability
- Risk: Slowing economy cuts domestic demand
Industries Where Huntsman International Competes
- Chemicals
- Plastic & Fiber Manufacturing (primary)
- Basic and Intermediate Chemical & Petrochemical Manufacturing
- Specialty Chemical Manufacturing
