Producers of solid polystyrene are facing low sales growth in Western Europe

West European polystyrene consumption fell by 4-5% last year. According to Lee Fagg, of petrochemicals industry consultancy Nexant Chem Systems, PS consumption has been stable – or even declining – in Europe and North America for some time, due mainly to structural trends that are affecting polystyrene demand.

“There has been ongoing substitution from other materials such as polypropylene in food service applications,” he said. “The continued shift in electronics and appliances manufacturing to Asia and Eastern Europe is also reducing PS consumption in Western Europe.” The West European polystyrene sector continues to suffer from over-capacity, especially since demand has fallen below expectations over the last three years. There have been some adjustments to capacity with unprofitable plants being taken out of production.