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Expandable Polystyrene

Chemical Economics Handbook

Published June 2021

Expanded polystyrene (EPS) is a rigid cellular plastic originally invented in Germany by BASF in 1950. EPS is 98% air and the rest is made from tiny, spherical EPS beads—themselves made only of carbon and hydrogen. EPS is among the largest commodity polymers produced in the world and is the second-largest styrene derivative, after polystyrene. It is a solid foam with a unique combination of characteristics, such as lightness, insulation properties, durability, and excellent processability. EPS is used in many applications, such as thermal insulation board in buildings, packaging, cushioning of valuable goods, and food packaging.

In the last few years, the EPS market has faced the challenges of a worldwide oversupply, weakened demand, and continued negative customer perception of EPS products. Although global demand will see a slight increase during the next five years, the overall capacity burden does not seem to be going away during the forecast period. As of 2020, there is an excess EPS capacity of over 5.5 million metric tons, with the majority held in mainland China, accounting for 66% of the global surplus. Due to Northeast Asia’s capacity abundance, the region’s operating rate currently sits near 52%. Although there is much needed room for significant consolidation and rationalization, there are no official capacity expansions or reductions anticipated worldwide over the next five years.

Building and construction is the largest demand segment, accounting for over 52% of global EPS demand in 2020. However, this application no longer leads the EPS industry from a growth perspective due to stagnant demand in Northeast Asia and Western Europe, coupled with an offset in stronger packaging growth. Mainland China’s construction industry downturn, along with declining insulation demand, have been significant factors leading to the overall weakening of global EPS demand into the building and construction markets. Another possible threat that may affect the future outlook is that the use of glass in mainland China’s construction industry appears to be rising due to attempts at going “green” in building and construction, which entails a reduction in the use of electricity. Since the use of glass would allow more sunlight into buildings, concrete (EPS insulation) could potentially face future substitution. North America has shown some of the strongest growth in these markets; however, the region only accounts for approximately 9% of overall global demand. EPS is commonly used for building and construction in molded sheets for building insulation, which are often packaged as rigid panels in both residential and commercial construction. In recent years, geofoam projects have also contributed to global EPS demand growth. Geofoam is used to provide a lightweight void fill below a highway, bridge approach, embankment, or parking lot. Over the next five years, global EPS demand for building and construction is projected to increase at an average rate of 2.6% per year to reach over 3.5 million metric tons by 2025.

For more detailed information, see the table of contents, shown below.

S&P Global’s Chemical Economics Handbook – Expandable Polystyrene is the comprehensive and trusted guide for anyone seeking information on this industry. This latest report details global and regional information, including

Key Benefits

S&P Global’s Chemical Economics Handbook – Expandable Polystyrene has been compiled using primary interviews with key suppliers and organizations, and leading representatives from the industry in combination with S&P Global’s unparalleled access to upstream and downstream market intelligence and expert insights into industry dynamics, trade, and economics.

This report can help you

  • Identify trends and driving forces influencing chemical markets
  • Forecast and plan for future demand
  • Understand the impact of competing materials
  • Identify and evaluate potential customers and competitors
  • Evaluate producers
  • Track changing prices and trade movements
  • Analyze the impact of feedstocks, regulations, and other factors on chemical profitability

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Table of Contents

Executive summary 6
Summary 8
World producers 9
Consumption 12
Building/construction 13
Packaging applications 14
Other 14
Introduction 15
Expandable polystyrenes 15
The rise of integrated styrenics companies 15
Challenges and opportunities 18
Challenges and threats 19
Research and development opportunities 19
Manufacturing processes 21
Modified mass polymerization or solution polymerization 21
Suspension polymerization 21
Additives 22
Syndiotactic polystyrene 22
Environmental issues 24
Substitution due to environmental/human health impact concerns 24
Recycling 24
Bans and regulations 25
Supply and demand by region 27
North America 27
Overview 27
Producing companies 27
Salient statistics 27
Consumption 28
Trade 30
United States 30
Producing companies 30
Salient statistics 32
Consumption 32
Packaging applications 34
Trade 35
Canada 35
Producing companies 35
Salient statistics 35
Consumption 36
Trade 37
Mexico 37
Producing companies 37
Salient statistics 38
Consumption 39
Trade 39
Central and South America 40
Producing companies 40
Salient statistics 41
Consumption 41
Trade 43
Western Europe 43
Producing companies 43
Salient statistics 45
Consumption 46
Trade 47
Central and Eastern Europe 47
Producing companies 47
Salient statistics 48
Consumption 49
Trade 50
CIS and Baltic States 50
Producing companies 50
Salient statistics 51
Consumption 52
Trade 53
Middle East 54
Producing companies 54
Salient statistics 55
Consumption 56
Trade 57
Africa 57
Salient statistics 57
Trade 59
Indian Subcontinent 59
Producing companies 59
Salient statistics 59
Consumption 60
Trade 61
Northeast Asia 61
Overview 61
Producing companies 61
Salient statistics 62
Consumption 63
Trade 64
Mainland China 64
Producing companies 64
Salient statistics 66
Consumption 67
Trade 69
Japan 69
Producing companies 69
Salient statistics 69
Consumption 70
Trade 71
South Korea 71
Producing companies 71
Salient statistics 72
Consumption 72
Trade 73
Taiwan 73
Producing companies 73
Salient statistics 74
Consumption 74
Trade 75
Southeast Asia 75
Producing companies 75
Salient statistics 76
Consumption 77
Trade 79
Appendix 80
Additional resources 81
Revisions 82
Data Workbook 83
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