Slower than anticipated demand growth in China and extensive capacity additions have led to a global oversupply of polystyrene (PS) as per a report by CMAIIn 2000-03, while global PS consumption decreased, China's consumption increased by 640,000 tons. Chinese demand growth in 2004 and 2005 is expected to be lower than it had been in previous years. Despite recently slowed demand for PS, China continues to drive demand growth for PS.
Worldwide PS demand has been suppressed by high product and raw material prices, which have encouraged product substitution and increased use of recycled or reprocessed material, especially in China. CMAI expects PS prices to ease and demand growth to recover. As propylene prices likely will remain high, PS will not face strong competition from polypropylene.
17-Nov-05 
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