As the world’s largest consumer of polystyrene, since the 2008 financial crisis in Asia a package of economic stimulus, contribute to the growth in demand for durable goods and polymers production and consumption surge. Consulting firm IHS data show that in 2015, China’s electronic and electrical industry demand for polystyrene will grow by about 3 percent in 2018 may reach 200 million tons. Plus polystyrene demand in Northeast Asia and South Asia, and the entire Asian market consumption will more than 2.6 million tons in 2020. Plastics manufacturers said that if oil prices continued to stabilize at current levels, polymer prices will stop falling, demand for plastics and profits are expected to remain strong.
By 2014, the EU polystyrene (PS) a substantial increase in imports of about 80%. IHS consulting firm said that due to low oil prices and low energy prices to stimulate the European economy, in 2015 the EU demand for polystyrene increase substantially, and because zero tariff polystyrene imported from South Korea, Europe may be a large number of imports from South Korea .
2013 and 2014, the high cost of benzene to the downstream manufacturers enormous pressure, and even began to consider switching to other materials, such as polypropylene. By the end of 2014, oil prices, benzene prices have begun to decline, downstream manufacturers have confidence, polystyrene producers also benefited. Decline in raw material prices higher polymer prices decline, so that the profits of manufacturers currently at record highs.
2014 fourth quarter, profit increased styrene, especially in Europe. Crude oil and naphtha prices reduce the cost of benzene and ethylene, and the fourth quarter of 2014, due to the styrene supply Shell Moerdijk Netherlands device interrupts and BASF of Germany means downtime, resulting styrene prices firm. By the end of February 2015, the European polystyrene average operating rate of up to 85% in March operating rate of 86%, the rate is expected to start in the second quarter will be higher.