Dow Stop Production on Polystyreme Poor Economics

Cyclical petrochemical business has brought Dow Europe to temporarily stop production of all its polystyrene (PS) resins at Terneuzen, the Netherlands. However, some operating units across Europe will still operating at reduced rates. Dow Polystyrene (PS) has production plants at Tessenderlo, Belgium, Bilbao in Spain, Schkopau in Germany and Lavrion in Greece and the Terneuzen unit which has an annual capacity of 50,000 tonnes/year.

The feedstock price hike comes mostly from the recent increase in global oil price. PS demand has been low for several months impactin producers in Europe including BASF, Total Petrochemicals, Dow, Polimeri Europa and INEOS NOVA.

US Petchem Industry Looking Gloomy Due to Recession

Everyone is talking about it, the US subprime crisis and the recession that is coming in 2008. The recession means less demand and US petchem industry is likely to suffer and be dependent totally on export.

The US housing market seems to have a high bearing on the economy and most business and economic analysts are in tandem with a conclusion that there will be a recession at least in the US in 2008 and this includes the chief of the American Chemistry Council (ACC).

Since end users of petrochemical products include those of housing and construction where most

Market Outlook for Polystyrene

Petrochemical outlook for 2008 polystyrene (PS) looks rather interesting with market trend is expecting to see Middle East polystyrene to be bullish with a lot of new capacity expansion for polystyrene chemical plants to be built at the expense of the South Asia Market.

Price for Polystyrene likely to remain strong and high due to tight supply in Middle East, with a different