Polyolefin Elastomer (POE) Market Analysis: Global Consumption at 1.36 Million Tons in 2021

Published Date: 2023-01-19
POE (Polyolefin Elastomers Poe) is a high-performance polyolefin product that becomes rubbery at room temperature, and has the characteristics of low density, large bending, high impact resistance at low temperature, easy processing, and reusability. In recent years, global POE consumption has continued to grow, from 1.04 million tons in 2017 to 1.36 million tons in 2021. The main application fields of POE include TPO terminals, polymer modification, wire and cable, and the consumption proportions in 2021 will be 51%, 29%, and 10% respectively.
As consumer demand grows, global POE production capacity expands. At present, South Korea accounts for 31% of global POE production capacity, the United States accounts for 27%, and Singapore and Thailand both account for 12%.

Benefiting from the promotion of photovoltaics, automobiles and other fields, China's POE demand continues to increase, and currently there is no POE production capacity in China. The source of POE is mainly through imports, and the global POE production capacity is mainly released to China. The data shows that from 2017 to 2021, China's POE consumption increased from 220,000 tons to 640,000 tons, and its share in global consumption increased from 21.2% to 47.1%.

The scale of China's POE imports is showing a growth trend. In 2020, China's POE import volume was 589,200 tons, a year-on-year increase of 32.8%; China's POE import value was 952 million US dollars, a year-on-year increase of 25.9%. In 2021, China's POE import volume will be 639,900 tons, a year-on-year increase of 8.6%; China's POE import value will be 1.416 billion US dollars, a year-on-year increase of 48.7%. From January to July 2022, China's POE import volume reached 378,800 tons, and the import value reached 1.077 billion US dollars.

Commercial POE production requires the use of bridged dicene catalysts and CGC catalysts. Catalyst is the key to POE solution coordination polymerization. At present, only a few countries in the world have mastered POE catalyst technology, and the POE market is highly concentrated. In 2022, the total global POE (including POP) production capacity will exceed 1.8 million tons per year, mainly in the hands of leading overseas chemical companies, including Dow Chemical, ExxonMobil, Borealis, Mitsui Chemicals, LG Chemicals, SK Group and Saudi Basic Industries Corporation.