India’s PS producers run units at 45-50% capacity on weak demand

16 November 2012 09:16  [Source: ICIS news]

SINGAPORE (ICIS)--Producers of polystyrene (PS) in India are running their units at 45-50% capacity because of weak demand in the domestic markets, market sources said on Friday.

Production cuts were made in early November, ahead of Diwali, as demand for general purpose PS (GPPS) as well as high-impact PS (HIPS) traditionally drops after the Diwali holiday, an industry source said.

Consequently, a number of downstream refrigerator manufacturing facilities have reduced production rates during this lull period, and do not want to carry PS inventories, the source said.

“With a number of downstream PS users shutting production units or scheduling maintenance activities during the post-festive period, there is no point in dumping product in the market,” said the source.

Production is likely to resume to 100% capacity, when demand picks up at end-December, the source added.

GPPS is used in the manufacture of refrigeration units, while HIPS, a copolymer composed of PS and polybutadiene (BR) is widely used in food packaging.

Traditionally, demand for PS from the downstream refrigerators and television manufacturing sectors peaks ahead of Diwali, when a number of families look to purchase new household appliances. Demand slumps after the Diwali festivities and recovers in late December or early January before the spring season.

Demand for packaged food and frozen beverages also drops in many parts of the country, during the winter season, which falls between December and February.

Diwali was celebrated on 13-15 November this year.

By: Veena Pathare
+65 6780 4327

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