In January 2025, the Expanded Polystyrene market in South Korea experienced a combination of stability and growth, influenced by various factors across multiple sectors. The first week the month saw a notable rise in Expanded Polystyrene costs, with prices increasing by 1.6% compared to the previous week. This was mainly because of a significant growth in export demand and a raise in restocking activities in the packaging sector, despite average domestic demand caused by ongoing macroeconomic challenges. Manufacturers also had to deal with the rise in energy costs, which continued to affect their profit margins.

Looking back at December 2024, the Expanded Polystyrene market had seen a sharp decrease, with prices falling by almost 9%. This decline was due to average new order intakes and decreased downstream demand. Input price inflation rose to the highest levels since November 2023, leading to increased output costs. Although export orders provided some support towards the end of the month, it was not sufficient enough to offset the bearish market conditions. Expanded Polystyrene manufacturers began January 2025 cautiously, with average hope for a significant price revival.

In the second week, Expanded Polystyrene prices increased by 2.3%, supported by enhanced demand from the construction and packaging sectors. Ongoing infrastructure projects and packaging requirements drove this demand. Additionally, increased feedstock costs, particularly for benzene, directly impacted Expanded Polystyrene production costs, prompting manufacturers to adjust prices upward.

A reduction in Expanded Polystyrene imports due to global supply chain constraints created tighter domestic market conditions, further supporting the price rise. Limited production capacity expansions among South Korean manufacturers also contributed to the constrained supply, intensifying the upward pressure on Expanded Polystyrene prices.

During the third and fourth weeks of the month, Expanded Polystyrene prices in South Korea remained stable despite changes in base material styrene and feedstock ethylene prices. This stability was due to several factors. While feedstock ethylene costs fluctuated, Expanded Polystyrene manufacturers did not pass on the costs directly to their suppliers to maintain competitive pricing amid steady demand from downstream construction sectors. Stable benzene prices provided further support to production cost management. Constant Expanded Polystyrene production levels and a well-balanced supply ensured no significant price changes.

By the final week of January 2025, Expanded Polystyrene prices continued to follow the trend observed over the previous weeks, with no significant changes in the factors affecting the final prices. The market dynamics and conditions remained consistent, indicating a period of relative stability for the Expanded Polystyrene market in South Korea. This period of stability shows cautious optimism among manufacturers as they overcome the changing economic landscape.