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EPCA 2018: European expandable polystyrene demand to grow 2%-2.5% in 2019: sources

London — European expandable polystyrene demand is expected to rise about 2%-2.5% as the construction sector picks up in 2019, according to market sources.

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"EPS will grow next year tracking GDP," a producer said on the sidelines of the EPCA conference in Vienna.

According to OECD estimates in May, the eurozone economy is expected to grow above 2% over 2018-2019.

The producer also noted that some older buildings in Europe do not required insulation.

Another major producer said he expected EPS demand to grow 2%-2.5% in Europe next years.

However, another source said the recent focus on fire safety regulations could dampen the expected growth of EPS, which is not fireproof, in construction.

EPS is typically used for packaging as it is a light yet rigid foam with good thermal insulation and high impact resistance.

--Olu Shaw, olu.shaw@spglobal.com

--Edited by Richard Rubin, richard.rubin@spglobal.com