Plastic Exports to Contract 1.9% in 2015 – Bioplastics to Support Long-term Growth (Current Issue No. 2662 Full Ed.)

Thailand's plastic product manufacturing has high potential towards producing products for domestic demand and export to major trade destinations, e.g., Japan, the US, Australia, Malaysia, Indonesia, China, etc. In 2014, Thailand shipped about 1.1 million tons of plastic products[1] valued at THB122.50 billion, representing 12.4 percent growth YoY.

Nonetheless, KResearch expects that Thailand's 2015 plastic product exports will contract about 1.9 percent YoY to THB120.22 billion, largely due to falling oil prices. Moreover, economic slowdowns in major destination economies, e.g., Japan, Indonesia and the Philippines, have caused demand to weaken in those markets. Product categories expected to shrink the most in shipped value may include plastic sheets, film, strips and containers. However, other items, e.g., office equipment, furniture parts, etc., should continue to grow favorably.

Meanwhile, such outbound trade should rebound satisfactorily in 2016, thanks to the economic recoveries of the US and some other trade partners. In addition, demand for Thai plastic goods within the CLMV bloc is rising consistently and plastics themselves are expected to recover in value somewhat from the recent global oil price slump, doing better than this year. KResearch expects Thailand's plastic exports to increase within a range of 2.3-4.0 percent YoY in 2016, reaching a value of perhaps THB122.98-125.03 billion.

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