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High Raw Material Prices Challenge the South African Thermoset Resins Market Cautions Frost & Sullivan - Government infrastructure development to sustain demand over long term -
High Raw Material Prices Challenge the South African Thermoset Resins Market Cautions Frost & Sullivan


NewswireToday - /newswire/ - Cape Town, South Africa, 2011/09/08 - Government infrastructure development to sustain demand over long term -

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Thermoset resins are used in a number of applications. Thermoset resin raw materials are petroleum based, and are consequently affected by the constant fluctuations in the price of Brent Crude Oil. Suppliers of thermoset resins manage the rise in raw material costs by passing on the cost increases to end users.

New analysis from Frost & Sullivan (, South African Thermoset Resins Market, finds that the total thermoset resins market was valued at $257.2 million in 2010 and is estimated to reach $320.9 million by 2017. The following products are covered in this research: epoxy resins, unsaturated polyester resins, phenolic resins and polyurethane resins. Composites, adhesives and sealants, paints and coatings, construction chemicals and other (including automotive and mining) are the end-user sectors covered in this research.

The South African Government is involved in the rollout of low-cost housing to the impoverished in the country. Programmes, such as the Reconstruction and Development Program (RDP), are aimed at ensuring access to housing for the country's populace.

"The demand for construction chemicals and coatings used in these projects is expected to be consistent throughout the long-term," notes Frost & Sullivan's Chemicals industry Analyst, Tatenda Zingoni. "Consequently, the demand for epoxy, unsaturated polyester and polyurethane resins is expected to be sustained."

Glass reinforced polymers (GRPs) produced, using thermoset resins, are used in manufacturing composites. These composites are increasingly replacing traditional materials such as steel and aluminium.

"The GRPs are comparatively more energy efficient than materials such as wood and bricks for construction purposes," notes Zingoni. "Increased uptake of GRP composites is, in turn, expected to contribute to growth in the demand for thermoset resins."

Thermoset resins are used in a wide range of applications such as composites, automotive brakes, adhesives and sealants and paints and coatings. The demand for these resins is, therefore greatly dependent on the general performance of the country's economy and its key end-user sectors.

Some raw materials used in the manufacture of thermoset resins are imported into South Africa. The South African market for thermoset resins is small, relative to the global market, and as a result the domestic market does not have any influence on the price of raw materials and therefore stands as price takers.

"Although South Africa's manufacturing industry is relatively larger than those in other sub-Saharan African countries, it is minuscule in comparison to the global market," explains Zingoni. "Local manufacturers, therefore, cannot influence the pricing of raw materials due to the small size of the resins market. Local manufacturers are often not given priority by the exporters of the raw materials because of their relatively small size."

Manufacturers of thermoset resins can ensure they are not negatively or largely impacted by delays, which could result from supply chain disruptions, by increasing their stock holding levels.

"Having control of the raw material availability for the manufacturing process enables manufacturers to have access to critical inputs to prevent bottlenecks in the production system," says Zingoni. "Although increasing stock levels escalate costs, this works out to be a better option than running out of the raw materials which would negatively impact the manufacturing cycle."

If you are interested in more information on this study, please send an email with your contact details to Samantha James, Corporate Communications, at samantha.james[.]

South African Thermoset Resins Market is part of the Chemicals & Materials Growth Partnership Services programme, which also includes research in the following markets: The Future of Manufacturing in South Africa, Strategic Opportunities for the Biofuel Industry in Key Sub-Saharan African Countries, Sub-Saharan African Market for Polyurethane and South African Market for Bio-renewable Chemicals. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

South African Thermoset Resins Market / M6B7

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High Raw Material Prices Challenge the South African Thermoset Resins Market Cautions Frost & Sullivan

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