June 2001

Trends and Resources

HP Impact: HPImpact: Polystyrene

The year 2000 for the polystyrene (PS) industry was one of extremes. It began with a hangover from Y2K. The normal de-stocking that occurs during fourth quarter did not occur in 1999. PS inventories h..

Weirauch, Wendy, Hydrocarbon Processing Staff

The year 2000 for the polystyrene (PS) industry was one of extremes. It began with a hangover from Y2K. The normal de-stocking that occurs during fourth quarter did not occur in 1999. PS inventories had grown. However, through 2000, the industry experienced one of the most massive de-stocking episodes of the past decade. Also by mid-year, energy costs rose, feedstock margins decreased and the early signs of an economic slowdown materialized. Economic growth is a primary driver for petrochemical demand. PS is not exempt from this trend. However, the correlation between demand and regional economic growth varies due to inter-regional trade in styrene, PS and end-use products containing PS.

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