Dow: Indonesian PS demand expected to grow by 10% in '01

22 January 2001 08:57  [Source: ICIS news]

JAKARTA (CNI)—Indonesia’s demand for polystyrene (PS) is expected to grow by 10.0% this year from 2000, or half the 1999-2000 rate, according to Didie Soewondo, country director for The Dow Chemical Co here.

He told CNI on Monday: "Dow experienced 20.0-25.0% growth last year as the economy recovered and downstream companies started building inventories. The economy is expected to grow by 4.5% this year, but PS demand would probably grow by 10.0%, at least. It all depends on currency stability, banks’ liquidity and the capability of the electronics industry to keep high export growth despite the feared slowdown in the US and Europe."

Last year’s domestic demand for general purpose and high-impact PS reached 70 000-75 000 tonne, while that for expandable PS was 11 000 tonne.

Soewondo predicted that competition in the domestic market would be more severe in 2001, as the full effect of the adjusted import duty (lowered last June to 10.0% from 15.0%) is felt.

Indonesia has three PS producers - Dow subsidiary Pacific Indomas Plastik Indonesia, Polychem Lindo and Risjad Brasali Styrindo. Their combined capacity is about 100 000 tonne/year.

By: Jack Lukup
+65 6780 4359

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