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1, the demand is brisk, the consumption growth rate is amazing, and the market potential is great. Since 90s, the demand for polystyrene in China has been brisk, and consumption has been increasing rapidly. In 1999, the national total polystyrene consumption reached 2 million 430 thousand tons, an increase of 10 times more than in 1990, an average annual growth rate of 27.6%, the growth rate in the five general synthetic resin after ABS resin, which is more than 6 times over the same period the average growth rate of the world. It is predicted that in the future China's demand for polystyrene will continue to grow steadily. In 2005, it will reach 3 million 170 thousand ~ 3 million 300 thousand tons, and it will reach 3 million 900 thousand ~ 4 million 200 thousand tons in 2010. The market prospect is quite optimistic.

2, production capacity is insufficient, import dependence is large, domestic demand is exuberant. Although China's polystyrene production capacity has increased rapidly, it still can not meet the demand, and has to rely on a large number of imports. In 1999, China polystyrene production capacity of about 1 million 400 thousand tons, of which high impact polystyrene / general purpose polystyrene production capacity of 1 million tons, expandable polystyrene production capacity is estimated at 400 thousand tons. At the same time, in 1999 the total output of polystyrene in China was about 940 thousand tons, which is far from the demand. To meet the demand, in 1999 China imported 1 million 517 thousand tons of polystyrene resin, and also increased by nearly 10 times than in 1990, the import dependence of more than 60%.

3. Foreign-funded enterprises are important forces in the production of polystyrene in china. Foreign invested enterprises play an important role in the production of polystyrene in china. In the 5 largest domestic polystyrene manufacturers, there are 3 Foreign-funded enterprises, namely Zhenjiang Chimei chemical Co. Ltd. (300 thousand tons / year), Yangzi BASF styrenics Co. Ltd. (142 thousand tons / year) and LG Ningbo Yongxing Chemical Co. Ltd. (100 thousand tons / year). In 1999, the total production capacity of the 3 enterprises in polystyrene reached 542 thousand tons, of which high impact polystyrene / general polystyrene was 500 thousand tons, accounting for half of the country's total production capacity. In the future, the production capacity of China's foreign enterprises will continue to grow rapidly. By 2005, the production capacity of foreign enterprises will exceed 1 million 400 thousand tons of polystyrene, accounting for nearly 60% of the country's total production capacity, will continue to be an important force in the production of polystyrene in china.

4 �� electronic / electrical equipment is the most important consumption area of polystyrene in china. In developed countries, the main consumption area of polystyrene is packaging containers, accounting for about half of the total consumption. In our country, the main consumption of polystyrene is electronic / electrical equipment, accounting for about 60% of the total consumption of polystyrene. In 1999, China's electronic / electrical equipment industry consumed 1 million 460 thousand tons of polystyrene resin, accounting for 60% of the total consumption of the country, and daily necessities and packaging accounted for 24% and 10% respectively.