PS predicted to grow marginally from 2001 to 2011

15-Nov-06

Demand growth, or lack of it, is a major issue for Polystyrene, indicating that the global demand for PS has stagnated. The average annual growth rate predicted from 2001 to 2006 is 0.9% globally and the forecast for 2006-2011 is only expected to show a slight increase, according to CMAI. Several announcements to close PS capacity in North America and Europe were made this year. At the same time, additional capacity is being added in Asia and the Middle East. As demand is so low, there is more than ample PS capacity to meet current demand. Regionally, there is further concern about the slowing of demand growth in China, which has usually had a phenomenal growth rate compared to the more mature U.S./Canada, Western Europe and Japanese markets. Contrary to PS, expandable polystyrene (EPS) has experienced strong global demand with an average annual growth rate of 5.5% for 2000-2006. Demand in 2006 is forecast to rebound after a slowdown in 2005, led by the construction sector. In 2006, China accounted for one-third of global EPS demand. It is by far the largest market in the world and continued growth is expected.