Since late Q1 of 2023, the price of Polystyrene and Expanded Polystyrene has fluctuated within small ranges, and neither market has responded significantly to the rising price of crude oil futures. Convertibles were put on hold due to cash flow problems, economic worries, and lingering uncertainty surrounding May's Turkish presidential elections. Demand for Expanded Polystyrene also fell short of seasonal projections.

Following supply issues brought on by an output reduction from OPEC+, Crude Oil futures have been on a bullish run for more than two weeks. Despite higher stocks in the US, the upswing this week was influenced by the slowing US inflation rate.

Furthermore, this month, a price increase all over Europe for all grades of Polystyrene and Styrene Acrylonitrile (SAN) was announced by Trinseo, a provider of specialty material solutions. The contract and spot prices for all these products were increased in response to the high-priced feedstock Styrene.

The subsequent impact of the Earthquakes has already raised prices in Turkey. Players reported receiving Polystyrene offers that were USD 140/ton higher due to the higher feedstock Styrene settlement and higher spot values, and players expected hike attempts from regional suppliers.

According to a representative of a European producer, "There is no room for discounts on Polystyrene. However, our supplier withheld any information regarding the status of the supply."

Conversely, Expanded Polystyrene did not trace the price hike of feedstock Styrene as many factors contributed to the fact that Expanded Polystyrene prices continued to decline into April. Given deeper cash flow issues and an abundance of supply, sellers neglected to reflect rising Styrene prices onto their offers as demand lagged behind seasonal expectations. Buying interest was present in the early days of April, as some regular buyers were drawn back to the market by the recent price reductions, according to a source from a domestic Expanded Polystyrene producer. Nevertheless, a difficult economic environment and colder-than-anticipated weather kept demand below average for this time of year.

As per ChemAnalyst, Polystyrene and Expanded Polystyrene prices might rise as the feedstock keep getting strengthened, and demand is expected to rise.