1 December 2006 – Stagnation in global demand is inhibiting polystyrene market growth, says CMAI in a new report.
The US research group said the annual average demand growth rate for polystyrene was only 0.9% globally between 2001 and 2006. It forecasts the 2006-2011 period will show only “a slight increase”.
CMAI said: “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 US/Canada, western Europe and Japanese markets.”
In contrast, expandable polystyrene has experienced strong global demand with an average annual growth rate of 5.5% in 2000-20006. The construction sector has led the increase, it said.
China accounted for one-third of global EPS demand this year and its growth is likely to continue, said CMAI. China has also added extensive production capacity for EPS.
