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Market Report: Flue Gas Desulfurization
Filtration Industry Analyst
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July 2001
MARKET REPORT:
ECONOMIC
Flue Gas Desulfurization
REVIEW
Power plants around the world will spend increasing amounts on flue gas desulfurization (FGD) systems through 2008 when annual purchases will reach US$8.8 billion before falling to US$8.2 billion in 2009, according to new figures from the McIlvaine Co. The Northbrook, Illinoisbased market research firm says that purchases of FGD systems in 2001 will be worth an estimated US$2.5 billion. These newly revised figures and forecasts are included in the on-line Mcllvaine report World Flue Gas Desulfurization Markets at www. mcilvainecompany.com, McIlvaine suggests that the market drivers in Europe are the stricter emission limits in the region. These limits not only impact on present European Union (EU) members but also on those countries seeking EU entry. The main driver in Asia is the expansion and development of the region's coal-fired plant capacity. In the US market, the sudden switch from gas to coal for new power plants has resulted in 68 new projects. An even bigger factor in the US FGD market is the forthcoming regulations to force the installation of scrubbers on virtually all existing coal-fired power plants. Mcllvaine believes that thousands of manufacturers and suppliers will benefit from these very substantial expenditures. The large system suppliers who book orders valued at US$100 million or more will be companies such as Alstom, Babcock & Wilcox, Mitsublshi and Babcock Borsig. These
m
companies in turn will issue purchase orders for products such as pumps, steel, filters and other components. In 2008, for example, Mcllvaine expects orders received by pump and valve suppliers to exceed US$75 million. Suppliers of stainless steel and other corrosion resistant materials are set to receive orders totaling US$525 million. For suppliers of fans, dampers and expansion joints, orders worth more than US$200 million will be booked, while suppliers of liquid/solid separation systems look set to enjoy a market worth an estimated US$53 million. According to Mcllvaine FGD not only reduces SO2 emissions by up to 98% but it also removes HC1 and other acid gases. The systems also remove heavy metals resulting in clean exhaust gases. The typical plant will utilize lime or limestone and convert SO2 into wallboard quality gypsum. This eliminates the need to mine gypsum and as a result provides additional environmental benefits. For more information on World Flue Gas Desulfumzation Markets, please visit www.mcilvainecompany.com or contact: Mcllvaine Company 2970 Maria Avenue Northbrook IL 60062 USA Tel: +1 847 272 0010 Fax: +1 847 272 9673 E-mail: editor@ mcilvainecompany.com
The latest purchasing managers' survey, published by the Chartered Institute of Purchasing and Supply (CIPS) and sponsored by Reuters, saw UK manufacturing contract for the third month running. The seasonally-adjusted Purchasing Managers' Index (PMI - a composite indicator designed to provide an overall view of the manufacturing economy) fell from 47.7 in April to 46.4 in May - its lowest since January 1999 - as contraction of output and order books prevailed. Intermediate goods was the worst performing sector again in May as output and order books contracted for the third successive month and at the fastest rates since the beginning of 1999. The seasonally-adjusted Output Index for the whole manufacturing economy measured 44.5 in May, down from 47.8 in April, recording its lowest level since December 1998. The seasonally-adjusted New Orders Index measured 47.9 in May, down from 48.7 in April, signalling contraction of overall manufacturing demand for the second month running and at the fastest pace since January 1999. Firms reported the negative impact of the exchange rate effect on export order books. Panellists also continued to report the detrimental knock-on effect that the deteriorating US economy was having on UK export orders. The seasonally-adjusted Quantity of Purchases Index recorded 42.7 in May, down from 45.0 in April to signal reduced buying among panel firms for the third consecutive month, and the sharpest decline of purchasing activity since December 1998. Weaker demand for inputs reflected
shrinking order books at panel firms as well as continued efforts to pare back inventories in light of the current downturn in economic activity being seen throughout global markets.
EXCHANGE RATES AGAINST THE US DOLLAR Date: 14 June 2001 COUNTRY
RATE
Australia
A$1.89
Austria
Sch 16.04
Belgium
BFr47.00
Canada
C$1.52
China
Rmb8.28
Denmark
DKr8.67
Finland
FM6.92
France
FFr7.64
Germany
DM2.28
India
Rs47.02
Italy
L2254.24
Japan
¥121.31
Malaysia
Rt3.80
Netherlands F12.57 Norway
NKr9.28
Philippines
Peso51.23
Singapore
S$1.81
South Africa R8.04 South Korea Won1290.98 Spain
Pta193.71
Sweden
SKr10.72
Switzerland
SFrl.78
Taiwan
T$34.40
Thailand
Bt45.10
UK
£0.71
USA
US$1.00
Euro
C1.16
>
L;
0 Z 0 p.-
<:
July 2001
MARKET REPORT:
ECONOMIC
Flue Gas Desulfurization
REVIEW
Power plants around the world will spend increasing amounts on flue gas desulfurization (FGD) systems through 2008 when annual purchases will reach US$8.8 billion before falling to US$8.2 billion in 2009, according to new figures from the McIlvaine Co. The Northbrook, Illinoisbased market research firm says that purchases of FGD systems in 2001 will be worth an estimated US$2.5 billion. These newly revised figures and forecasts are included in the on-line Mcllvaine report World Flue Gas Desulfurization Markets at www. mcilvainecompany.com, McIlvaine suggests that the market drivers in Europe are the stricter emission limits in the region. These limits not only impact on present European Union (EU) members but also on those countries seeking EU entry. The main driver in Asia is the expansion and development of the region's coal-fired plant capacity. In the US market, the sudden switch from gas to coal for new power plants has resulted in 68 new projects. An even bigger factor in the US FGD market is the forthcoming regulations to force the installation of scrubbers on virtually all existing coal-fired power plants. Mcllvaine believes that thousands of manufacturers and suppliers will benefit from these very substantial expenditures. The large system suppliers who book orders valued at US$100 million or more will be companies such as Alstom, Babcock & Wilcox, Mitsublshi and Babcock Borsig. These
m
companies in turn will issue purchase orders for products such as pumps, steel, filters and other components. In 2008, for example, Mcllvaine expects orders received by pump and valve suppliers to exceed US$75 million. Suppliers of stainless steel and other corrosion resistant materials are set to receive orders totaling US$525 million. For suppliers of fans, dampers and expansion joints, orders worth more than US$200 million will be booked, while suppliers of liquid/solid separation systems look set to enjoy a market worth an estimated US$53 million. According to Mcllvaine FGD not only reduces SO2 emissions by up to 98% but it also removes HC1 and other acid gases. The systems also remove heavy metals resulting in clean exhaust gases. The typical plant will utilize lime or limestone and convert SO2 into wallboard quality gypsum. This eliminates the need to mine gypsum and as a result provides additional environmental benefits. For more information on World Flue Gas Desulfumzation Markets, please visit www.mcilvainecompany.com or contact: Mcllvaine Company 2970 Maria Avenue Northbrook IL 60062 USA Tel: +1 847 272 0010 Fax: +1 847 272 9673 E-mail: editor@ mcilvainecompany.com
The latest purchasing managers' survey, published by the Chartered Institute of Purchasing and Supply (CIPS) and sponsored by Reuters, saw UK manufacturing contract for the third month running. The seasonally-adjusted Purchasing Managers' Index (PMI - a composite indicator designed to provide an overall view of the manufacturing economy) fell from 47.7 in April to 46.4 in May - its lowest since January 1999 - as contraction of output and order books prevailed. Intermediate goods was the worst performing sector again in May as output and order books contracted for the third successive month and at the fastest rates since the beginning of 1999. The seasonally-adjusted Output Index for the whole manufacturing economy measured 44.5 in May, down from 47.8 in April, recording its lowest level since December 1998. The seasonally-adjusted New Orders Index measured 47.9 in May, down from 48.7 in April, signalling contraction of overall manufacturing demand for the second month running and at the fastest pace since January 1999. Firms reported the negative impact of the exchange rate effect on export order books. Panellists also continued to report the detrimental knock-on effect that the deteriorating US economy was having on UK export orders. The seasonally-adjusted Quantity of Purchases Index recorded 42.7 in May, down from 45.0 in April to signal reduced buying among panel firms for the third consecutive month, and the sharpest decline of purchasing activity since December 1998. Weaker demand for inputs reflected
shrinking order books at panel firms as well as continued efforts to pare back inventories in light of the current downturn in economic activity being seen throughout global markets.
EXCHANGE RATES AGAINST THE US DOLLAR Date: 14 June 2001 COUNTRY
RATE
Australia
A$1.89
Austria
Sch 16.04
Belgium
BFr47.00
Canada
C$1.52
China
Rmb8.28
Denmark
DKr8.67
Finland
FM6.92
France
FFr7.64
Germany
DM2.28
India
Rs47.02
Italy
L2254.24
Japan
¥121.31
Malaysia
Rt3.80
Netherlands F12.57 Norway
NKr9.28
Philippines
Peso51.23
Singapore
S$1.81
South Africa R8.04 South Korea Won1290.98 Spain
Pta193.71
Sweden
SKr10.72
Switzerland
SFrl.78
Taiwan
T$34.40
Thailand
Bt45.10
UK
£0.71
USA
US$1.00
Euro
C1.16