Adhesive website shares analysis of adhesive application prospects 123
Global adhesive and sealant manufacturers are optimistic about this year’s prospects, especially as lower raw material prices will increase industry profit margins. Industrial assembly applications, especially in the automotive and emerging markets, will drive the continuous growth of adhesive demand. Industry analysts predict that the global adhesive market growth rate will slightly exceed the global GDP growth rate this year.
H. B. Fuller’s President and CEO Jim Owens believes that the overall global adhesive market demand will grow by 3% to 4% this year. And IHS predicts that the global GDP growth rate this year will be about 2.9%. Eric Linak, a senior analyst at IHS Chemicals, pointed out that by region, the North American adhesive market is expected to grow by 3% to 4%, Europe by 2% to 3%, and Asia by 5% to 6%. According to statistics from IHS Chemicals, the total consumption value of the global adhesive and sealant market in 2023 is approximately $113.8 billion.
The decrease in prices of petroleum and petrochemical raw materials will drive down the cost of raw materials, but it will not have an immediate effect. The vast majority of raw materials used for adhesive are related to petrochemical products, and in the long run, the decline in petrochemical raw material prices will reduce raw material costs. However, in the short term, the supply and demand situation of each chemical is determined by the supply behavior. Due to inventory and contract factors, a drop in oil prices usually takes at least six months to affect company performance. Fuller Company is currently in negotiations with suppliers to ensure that the benefits of the oil price decline are transmitted throughout the entire supply chain. Due to the fact that the raw materials used for adhesives are generally secondary and tertiary derivatives of petrochemical products, they are not directly affected by the decline in oil prices. In addition, these manufacturers purchase relatively less raw materials for pure petrochemical products, with only about 13% of the raw materials purchased by Fuller Company being pure petrochemical products.
Nevertheless, low oil prices are still beneficial for improving the overall profit margin of the adhesive industry. Overall, the decline in crude oil prices will help increase the profitability of its adhesive business. In addition, the decline in oil prices will stimulate overall economic growth, indirectly boosting the market demand for adhesives.
Adhesive website shares analysis of adhesive application prospects 123
The automotive industry is undoubtedly one of the prominent industries in the application of adhesives. Adhesives are replacing mechanical fasteners in various industries, including transportation, electronics, construction, clothing, etc. The potential trend for future macro development is to replace mechanical fasteners with adhesive technology.
In terms of automotive applications, lightweighting is driving an increasing number of adhesive structures. The use of adhesives can make cars lighter and have a more streamlined structure. Fuller Company acquired Beijing Tianshan New Materials Company last year. This is a high-tech enterprise specializing in the research and development, manufacturing, and sales of engineering adhesives. Its engineering structural adhesives are widely used in the automotive and transportation industries. The demand for this type of structural adhesive in the automotive production industry will continue to grow rapidly, as car manufacturers face stricter emission standards and constantly improve average fuel economy standards. The use of adhesives can significantly reduce the weight of vehicles, which is a key factor in reducing emissions. On average, 30 kilograms of adhesive can replace approximately 90 kilograms of mechanical fasteners in each vehicle.
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This article is included in Baidu Wenku
