CMAI Completes 2010 World Polystyrene/EPS Analysis

Houston, TX /PRNewswire/ - Chemical Market Associates, Inc. (CMAI) announces the completion of the 2010 World Polystyrene/EPS Analysis, an annual global study that covers the future outlook for supply, demand, production, capacity, trade, pricing and profitability of the global polystyrene and EPS industries for the period 2004 to 2014. Included with each analysis is access to CMAI's online capacity and supply/demand databases with a mid-term update incorporating the latest economic outlook. The analysis is a necessary resource for business managers and planning professionals who need to make strategic business decisions based on the recent unpredictability in the global financial markets and fluctuations in energy prices.

Polystyrene
One of the most important trends in the supply of polystyrene has been the rationalization and/or divestment of assets, especially in the mature markets of North America and West Europe. The trend in those regions has been driven by declining domestic markets, the migration of consuming industries and a lack of export competitiveness. Asia has needed massive consolidation for some time but the industry hardly seems to have the energy left to renew itself, as those in the developed markets have already.

On the demand side, the most important problem facing the polystyrene business is the almost uninterrupted decline it has experienced. PS is a mature product that is heavily exposed to price sensitive end-uses having a number of competitive pressures from alternative materials, both natural and synthetic.

Expandable Polystyrene
EPS is the second largest styrene derivative. Polystyrene, EPS and ABS are the three largest styrenic derivatives representing nearly 75 percent of styrene demand. Demand growth for EPS during most of this decade has been rather spectacular, excluding the recent economic collapse. From 2000 to 2007, the world EPS market growth outpaced global GDP growth of 3.2 percent. This is even more impressive when you consider that this includes a period where economic growth stalled in the early part of this decade. The recent economic recession, however, has taken a toll, with demand decreasing over the last 2 years.

The combination of "no growth" in polystyrene and decent growth in expandable polystyrene has caused EPS to grow from the position of 14 percent of styrene demand in 2000 to almost 20 percent of styrene demand in 2009. Over time, expandable polystyrene is becoming a more important part of the styrenics demand picture.

To find out more about the current market issues and CMAI's outlook for this industry, order this analysis now at www.cmaiglobal.com. The analysis is available in book and CD-ROM format, with access to CMAI's Online Capacity and Supply/Demand databases. With updates to the Capacity database as changes in the marketplace occur, and an annual mid-year update to the Supply/Demand database, clients find this database access to be a necessary tool for their strategic business decisions.

CMAI is the premier provider of Market, Planning and Business Advisory services offering a unique combination of consulting analytics and expertise for the global chemical, plastics, fibers and chlor-alkali industries. With offices in Houston, New York, London, Dubai, Düsseldorf, Singapore and Shanghai, CMAI has provided expert business advisory services to a broad base of companies across multiple value chains and geographies since 1979. Clients to CMAI services include chemical and oil companies, technology & EPC companies, banking and financial institutions, plastic converters, textile & apparel manufacturers, brand-owners, grocers/retailers, government agencies and trading companies.

SOURCE Chemical Market Associates, Inc.