Australian (ASX) Stock Market Forum

Plastics producers on ASX?

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17 September 2004
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As investors, we should be looking for the next market segment to take off before it becomes apparent to everyone else.

So here is my go:

Plastics will become the next investment 'fad'. With metals skyrocketing, there will be more emphasis on substituting metals with plastics where possible. This may become particularly common as 316SS cost rockets due to the nickel boom.

Problem is ICI (Orica) sold thier botany plastics plants to the Chinese company Quenos.

Any other companies on ASX with exposure?

Risks: Plastics are produced from the 'energy' gases such as ethane (->ethylene) and propane (->propylene), and so will become more expensive with increases in POO. However they will increase less rapidly as there seems to be greater supply of the gasses, and they are less easily transported compared to oil.

Thoughts anyone?
 
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