China plans tariff reduction on Polystyrene imports from Singapore

07-Jan-09

China plans to reduce tariff on Polystyrene import from Singapore from 6.5% to 5% in 2009, and to 0% in 2010. Singapore follows Hong Kong, and will become the second Asian economy that enjoys 0 export tax to mainland China. Total Polystyrene imports from Singapore to Mainland China amounted to 82,500 tons in 2007, ranking the fifth among the source of origin and accounting for 28% of the entire PS capacity of Singapore. Singapore's total PS capacity is 295,000 tpa from two plants- a 95,000 tpa plant of Total, and a 200,000 tpa plant of Denka. As of now, several players believe that though the new tariff is expected to promote Polystyrene exports from Singapore, it is unlike to influence any major changes in Mainland China's PS import pattern in 2009.