The Polystyrene market in Germany continued its increasing trend in the first week of April 2025. Studies by the market analysis team at ChemAnalyst show that prices have increased by 1.8% from the last week of March. This was mainly because of the growth in feedstock styrene costs during the first two weeks of the month, which had contributed to the growth in Polystyrene prices throughout the month. However, the demand for this product from downstream electronics and packaging industries remained moderate and did not provide any significant support to the price trend.

In the last week of March 2025, Polystyrene market had shown drastic growth with 3.7% increase in prices, as major producers in the region were coming up with announcements of price hikes. This was mostly due to the rise in styrene rates, which kept the cost support though there was only limited improvement in usage. Market participants appeared to have expected seasonal recovery in the downstream sectors, urging traders to maintain strong Polystyrene quotes through the first week of April.

In terms of operations, Polystyrene production in Germany remained stable during the first half of April, because of the continuous availability of raw materials. Although styrene prices in Europe remained lower in the first week, the cost relief was only average. While this change helped to reduce the production costs slightly, competition among suppliers got intensified. As a result, some traders had to maintain their Polystyrene quotes to retain their sales. Import volumes were standard, and there weren’t any major supply disruptions apart from port congestions.

On the demand side, the packaging industry continued to show bearish performance. The Q1 2025 financial report of Gerresheimer shows a 9.3% decrease in organic adjusted EBITDA, indicating reduced demand for moulded glass and delays in product-specific revenues. Moreover, though the sustainability efforts in recycling plastics were constant, they did not lead to the growth of Polystyrene demand.

In the electronics sector, the recovery of the EMS market across Europe was still going on after the sharp decrease in 2024. Aerospace and household appliances segments in Germany experienced some growth, which supported the Polystyrene usage in electronic applications marginally. However, the overall activity levels remained limited, and the sector did not rebound significantly.

Looking forward, Polystyrene prices in Germany are expected to decrease in the coming months. The drop styrene prices could continue reducing the production costs, while limited activity in the downstream sectors might affect the market sentiments.