For the Quarter Ending September 2024
North America
In Q3 2024, the North American Expanded Polystyrene (EPS) market experienced a continuous decline in prices, driven by a combination of factors affecting demand and supply dynamics. The market faced challenges such as reduced demand from key sectors like packaging and construction, alongside an oversupply scenario that further pressured prices downward. Additionally, economic uncertainties led to cautious purchasing strategies, while seasonal factors contributed to lower industrial activity.
In the United States, where these trends were most evident, the market observed a -3.0% decline in prices compared to the previous quarter. This trend highlighted the sustained pricing pressure, and the difficulty faced by producers in maintaining price stability amidst weakening demand. The second half of Q3 saw a sharper decline in prices, with a notable drop in September, driven by continued demand softness and high inventory levels.
The quarter concluded with the price of Expanded Polystyrene White DEL Texas at 1881 USD/MT, reflecting the lowest point of the period. This quarter-ending price underscored the overall bearish market sentiment and the ongoing challenges in the EPS sector, characterized by persistent downward pressure on pricing and subdued market conditions.
APAC
During Q3 2024, the Expanded Polystyrene (EPS) market in the APAC region exhibited a mild but consistent decline in prices, influenced by several contributing factors. Subdued demand from critical sectors like construction and packaging, coupled with an oversupply situation driven by high inventory levels and steady production rates, played a pivotal role in pushing prices downward. Market participants adopted a cautious purchasing approach amid global economic uncertainties, which further pressured prices. Additionally, a decrease in feedstock styrene costs helped lower production expenses, fostering a competitive pricing environment among manufacturers. In China, where the price changes were most pronounced, the market faced seasonal effects, with a typical slowdown in construction activities as winter approached, further diminishing demand. This decline was compounded by broader economic challenges, weakening export demand, and the buildup of inventories, contributing to the downward pressure on prices. The EPS market recorded a -1.3% decrease from the previous quarter and a -2% decline between the first and second halves of Q3. The quarter concluded with EPS prices at 1365 USD/MT FOB Qingdao, underscoring a challenging pricing environment shaped by oversupply and weaker demand.
Europe
In Q3 2024, the Expanded Polystyrene (EPS) market in Europe faced a pronounced decline in prices, driven by a range of factors that put downward pressure on market dynamics. A key theme throughout the quarter was subdued demand from vital sectors like construction and packaging, as economic uncertainties dampened industrial activities across the region. Additionally, the market struggled with an oversupply situation, exacerbated by high inventory levels and stable production rates, which further contributed to the downward pricing trend. Competitive pressures, particularly from imports originating in Asia, compelled domestic producers to adjust their prices downward to remain competitive. The decline in feedstock styrene costs also contributed to lower production expenses, facilitating these price adjustments. Germany, as a major player in the European market, saw significant price fluctuations. The overall trend in Germany was marked by a steady decline, with seasonal slowdowns in construction activities and broader economic challenges further influencing the pricing environment. Compared to the same quarter last year, prices were down by around 1%. The quarter-on-quarter change indicated a sharper decline of about 4.3%. By the end of Q3, EPS prices settled at USD 2049/MT on an FD Hamburg basis, highlighting the sustained pressures in the market and the challenging conditions for producers throughout the period.
For the Quarter Ending June 2024
North America
Expanded Polystyrene (EPS) experienced a downward price trend in North America during Q2 2024, driven by multiple market forces. The quarter was characterized by a weakening demand from key sectors such as construction and packaging, leading to an oversupply in the market. This imbalance exerted considerable downward pressure on EPS prices.
Reduced production costs, owing to lower feedstock styrene prices, further contributed to the overall decline. Cautious market sentiments, fuelled by economic uncertainties, also deterred large-scale purchasing. In the USA, where price volatility was most pronounced, the EPS market reflected these broader dynamics, with prices exhibiting significant changes due to seasonal fluctuations and inventory adjustments. As the demand from downstream industries dwindled, oversupply concerns became more pronounced, causing suppliers to offer discounts to clear high inventory levels.
This quarter saw a notable decrease from the same period last year and a 6.8% decline from the previous quarter in 2024. A closer examination of the quarter reveals a consistent decreasing trend, with a 1.6% price drop noted between the first and second halves of Q2. The quarter ended with EPS Grey traded at USD 2,125/MT on DEL Texas basis. The overall pricing environment has been negative, reflecting bearish market conditions. Despite intermittent demand from steady sectors, high inventories and cautious economic outlooks have perpetuated a declining price trajectory for EPS in the USA.
APAC
The second quarter of 2024 for Expanded Polystyrene (EPS) in the APAC region demonstrated a pronounced upward price trajectory, driven by a confluence of factors. Market prices surged primarily due to intensified demand from key downstream sectors such as packaging, construction, and insulation. This robust demand was compounded by heightened feedstock costs, notably styrene and polystyrene, which surged in tandem with fluctuating crude oil prices. Additionally, logistical challenges and supply chain disruptions further stressed the market, exacerbating the scarcity and propelling prices upward. The quarter also saw elevated freight charges and geopolitical tensions contributing to increased production expenses, thus influencing market sentiment. In South Korea, the EPS market experienced significant price volatility, recording the highest price changes in the region. This market exhibited a solid bullish trend, underpinned by consistent demand from construction and packaging industries. Seasonality played a pivotal role, with peak construction activities directly correlating to the price hikes. The overall trend indicates a substantial increase from the same quarter last year, reflecting a robust growth trajectory. The quarter-on-quarter price escalation stood significantly, highlighting steady market momentum. Within the quarter, a 1.5% price rise was observed between the first and second halves, confirming continuous upward pressure on prices. The quarter concluded with EPS prices at USD 1585/MT FOB Busan, underscoring a positive pricing environment. This consistent increase suggests a resilient market bolstered by strong demand fundamentals and constrained supply channels, reflecting an overall positive sentiment in the pricing landscape.
Europe
The second quarter of 2024 has been characterized by stable prices for Expanded Polystyrene (EPS) across the European region. This stability can be attributed to several key factors. Firstly, there was a balanced supply and demand scenario, with no significant shifts in either direction. The market had already secured substantial inventory levels from the previous quarter, leading to a well-supplied state and reducing the need for price adjustments. Additionally, there were no major disruptions or changes in demand from key downstream industries like construction and packaging. The consistency in upstream raw material costs, such as polystyrene and styrene, further contributed to the stable pricing environment. Focusing on Germany, which experienced the maximum price changes within the quarter, the market saw overall trends reflective of the wider European sentiment. The seasonality did not bring about significant fluctuations, maintaining a stable market environment. The price correlation with other European markets and commodities remained consistent. Interestingly, the price comparison between the first and second half of the quarter showed no variation, underscoring the stability of the EPS market. The quarter ended with EPS priced at USD 2,195 per metric ton on FD Hamburg basis. Overall, the pricing environment has been stable, reflecting a well-balanced market supported by steady demand and supply conditions.
For the Quarter Ending March 2024
North America
In the intricate tapestry of the North American expanded polystyrene (EPS) market during the first quarter of 2024, a nuanced blend of stability and expansion unfolded. The outset of the year maintained a steady equilibrium, with prices steadfast in January. This mirrored a landscape of cautious procurement and ample supplies, echoing the sentiments of the preceding year's closure.
February introduced a subtle incline, driven by the creeping escalation of feedstock prices, foreshadowing the encroaching cost pressures permeating the market. March marked a notable shift, witnessing a surge in EPS prices in the US to USD 2150/MT, fuelled by robust demand emanating from the construction and packaging sectors. The intricate sway between supply and demand dynamics played a pivotal role, with constrained production struggling to match the burgeoning needs of downstream industries, thereby nudging prices upwards.
The quarterly trajectory depicted a market grappling with the intricacies of inventory management while endeavouring to cater to the escalating demands of industrial sectors. This narrative unfolded against a backdrop characterized by inflationary challenges and fluctuations in energy costs, adding further layers of complexity to the landscape.
APAC
The APAC Expanded Polystyrene (EPS) market navigated through a first quarter of gradual growth and market dynamism in 2024. Prices in China began the year with a subtle uptick in January, reflecting a cautious optimism in the market. The momentum continued into February, as prices climbed by 1.9% due to the normalization of production rates post-Chinese New Year and climbing feedstock costs. As March arrived, the market saw prices inch up by another 1.1%, settling at USD 1380/MT on FOB -Qingdao basis. This was spurred by increasing demand in packaging and construction sectors, where EPS's lightweight and insulating properties are highly valued. Throughout the quarter, the EPS market dealt with fluctuating supply chain scenarios but maintained a stable supply-demand balance. Growth in the manufacturing PMI provided an additional boost, hinting at enhanced domestic and international order flows. Despite varied pressures, from feedstock price movements to logistical challenges, the market's ability to sustain a gradual price increase indicates resilience and adaptability to the ongoing industry demands and economic conditions.
Europe
The European expanded polystyrene (EPS) market saw diverse trends in the first quarter of 2024, with Germany's market providing a clear snapshot. Starting the year with a slight dip in prices to EUR 1870/MT, the market encountered sluggish demand and high stock levels, leading to modest trading activity. February brought a reversal of fortunes, as prices surged by 4.3% due to increased production costs, influenced by rising feedstock prices and disruptions in the Red Sea. Despite these challenges, downstream demand remained tentative amidst growing freight costs. March witnessed a significant 9.7% leap in EPS prices, reaching EUR 2140/MT. This jump was propelled by a spike in packaging demand and supply chain hurdles stemming from protest-related disturbances. While styrene prices provided some stability, logistical issues predominated, leading to tighter EPS supplies, and driving up costs. As the quarter closed, the market began to recalibrate, balancing the earlier disruptions with a careful eye on evolving demand and supply equations.
For the Quarter Ending December 2023
North America
The North American Expanded Polystyrene (EPS) market witnessed a stable supply chain, moderate demand, and consistent pricing environment in Q4 2023. The market's adaptability to supply and demand influences ensured a stable and reliable pricing landscape. Despite a noticeable drop in feedstock Styrene prices, the market sustained its stability due to continued high demand from downstream industries, particularly in the automotive and construction sectors.
Limited market uptake and declining regional demand might lead to a decline in Styrene prices. The strike by the United Auto Workers (UAW) union against major U.S. automakers played a significant role in softening the product price. The USA witnessed a bearish trend in Q4, with low demand from the automotive industry and moderate demand from the packaging and construction industries.
A surplus of product supplies combined with weak product demand compelled producers to lower product prices. The recent substantial decrease in the market value of crude oil resulted in lower energy prices, further influencing the cost of production for new Expanded Polystyrene products. The latest price of Expanded Polystyrene Grey DEL Texas in the USA for Q4 2023 was USD 1920/MT during the quarter ending december 2023.
APAC
The North American Expanded Polystyrene (EPS) market witnessed a stable supply chain, moderate demand, and consistent pricing environment in Q4 2023. The market's adaptability to supply and demand influences ensured a stable and reliable pricing landscape. Despite a noticeable drop in feedstock Styrene prices, the market sustained its stability due to continued feeble demand from downstream industries, particularly in the automotive and construction sectors. Limited market uptake and declining regional demand lead to a decline in feedstock Styrene prices. The strike by the United Auto Workers (UAW) union against major U.S. automakers played a significant role in softening the product price. The USA witnessed a bearish trend in Q4, with low demand from the automotive industry and moderate demand from the packaging and construction industries. A surplus of product supplies combined with weak product demand compelled producers to lower product prices. The recent substantial decrease in the market value of crude oil resulted in lower energy prices, further influencing the cost of production for new Expanded Polystyrene products. The price of Expanded Polystyrene Grey DEL Texas in the USA during Dec 2023 was USD 1920/MT DEL Texas.
Europe
The Expanded Polystyrene (EPS) market in Europe during the fourth quarter of 2023 witnessed a bearish market situation with a moderate to high supply. The prices of EPS in key European regions experienced a decline, with Rotterdam and Hamburg witnessed a decrease of around 7.7% and 7.4% respectively. The market was driven by the abundant availability of material and continuous supply. This fluctuation can be attributed to the continuous drop in the feedstock Styrene price, which lowered the base material cost and favored overall production costs. The market demonstrated a surplus of products flowing in from manufacturing units. On the other hand, Felixstowe in the United Kingdom saw a bearish market situation with a stable supply trend and a price decline of 1.4% in November 2023.Belgium, specifically Antwerp, experienced significant changes in EPS prices during the fourth quarter of 2023. The price declined by 7.4% in December 2023. These price fluctuations were influenced by the continuous drop in the feedstock Styrene price, which impacted the production cost. Overall, the European EPS market in the fourth quarter of 2023 was characterized by a bearish market situation, high supply, and price fluctuations driven by the feedstock Styrene price. Belgium, particularly Antwerp, experienced significant changes in prices during this period.
For the Quarter Ending September 2023
North America
In the US market, the Expanded Polystyrene (EPS) experienced overall bearish market fundamentals throughout the third quarter of 2023. Expanded Polystyrene Grey DEL Texas (USA) 's price decreased by approximately 2% over the entire Q3 period. In the first month of Q3, reduced demand from the construction (insulation) and packaging sectors resulted in weak product exports, leading to increased inventories in domestic ports. Consequently, this surplus supply allowed suppliers to offer lower bids for the commodity and compelled sellers to provide discounts on the material. However, the EPS market displayed a measured increase in its pricing pattern in August after experiencing a declining trend in the previous month. This price elevation can be primarily attributed to the notable surge in Styrene contract prices and the robust fundamentals of the upstream market segment. As feedstock Styrene prices continued to rise, the production costs of EPS naturally followed suit, directly impacting the final product's market price. In contrast, the EPS market in September maintained continuous stability driven by equilibrium between demand and supply. This consistency contributed to a well-saturated market with steady pricing. This stability can be largely attributed to a reduction in export activities, primarily caused by drought conditions in Panama. The resulting slowdown in shipping through the Panama Canal led to a decrease in export volumes of finished downstream products. Consequently, the domestic market witnessed the accumulation of high inventories of raw materials, significantly influencing market dynamics. Despite consistently high demand from downstream industries, ample inventories within the local market played a pivotal role in upholding overall market stability.
APAC
In the Asia-Pacific region, the Expanded Polystyrene (EPS) market experienced a significant uptick during the third quarter of 2023. The price of Expanded Polystyrene FOB Qingdao (China) increased by approximately 2.5% within Q3. The market had initially witnessed a declining trend, characterized by weakened demand from downstream sectors such as packaging and construction, which had created a cautious sentiment in the market. Despite the upward movement of feedstock Styrene and Crude oil prices, their impact on the EPS market fundamentals had remained relatively limited. The decreased demand, coupled with a consistent inflow of materials, had led to high inventory levels, making buyers hesitant and affecting overall market activity. However, as the second month of Q3 unfolded, the EPS market began to show an upward price trend. This increase occurred despite stability in demand from downstream sectors like packaging and construction. The rise in demand from the Automotive sector had kept the market undersupplied. Additionally, the surge in feedstock Styrene and crude oil prices had notably impacted production costs. The strong PMI indicated that manufacturing and services were expanding at an accurate pace. In September, EPS once again showcased an increment in its market dynamics. This increase was primarily driven by a scarcity of inventories in the local market and robust demand from downstream overseas industries. Furthermore, the continuous upward trajectory of upstream dynamics further solidified the market. Notably, the Chinese Manufacturing Purchasing Managers' Index (PMI) remained at 50.6 in September 2023, and the new orders index also exhibited an increase of 0.3 percentage points from the previous month, indicating continued improvement in manufacturing market demand.
Europe
In the European market, the Expanded Polystyrene (EPS) witnessed a noticeable decline of approximately 1.4% during the third quarter of 2023. At the beginning of Q3, the EPS market displayed a declining price trend, primarily due to weak demand from downstream packaging industries. Despite increasing feedstock Styrene and Crude oil contract prices, driven by supply reductions by the Organization of Petroleum Exporting Countries, the EPS market demonstrated resilience to this trend. Constraints in demand from packaging and plastic industries contributed to cautious market sentiments. Meanwhile, a consistent influx of material led to an oversupply, making buyers hesitant due to high inventory levels. This oversupply situation significantly influenced market dynamics. Furthermore, in August, major consumer packaging and insulation industries faced operational challenges, which resulted in a cautious approach and limited trading activities. Sellers responded by offering discounts on the product. However, in September, the EPS market experienced a slight price increment, attributed to increased demand, leading to a surge in trade volumes as the market sought to meet growing requests from other European regions. Consequently, the market grappled with a supply shortage for EPS. This price hike was primarily in response to the recent surge in the cost of the primary feedstock, Styrene, which had a ripple effect throughout the Expanded Polystyrene market. This heightened demand significantly contributed to the price increase in the EPS market.
For the Quarter Ending June 2023
North America: USA
In the US market, the overall market fundamentals of Expanded Polystyrene (EPS) remained bearish during the entire second quarter of 2023. The price of Expanded Polystyrene Grey DEL Texas (USA) showcased a decrement of roughly 5.5% during the entire Q2 time. In the first month of Q2, reduced demand from the construction (insulation) and packaging sectors resulted in weak exports of containers, with its increase in the inventories in the domestic ports occurring, consequently opening the doors for the suppliers to offer lower bids for the commodity and force sellers to provide discount on the material. Despite this, a consistent inflow of material left buyers hesitant in May due to high inventories as demand recovery fell short of expiation during this month. With it, sluggish trading activities have been observed for this commodity. Additionally, In May, the downfall of major banks in the USA caused a drastic effect on the US market condition and motivated buyers to hold back from placing large orders. Furthermore, in the month of June, the EPS market remained affected by these factors and failed to regain momentum. Additionally, weak feedstock styrene cost pushes the sellers to keep the price softer to maintain the market economically.
APAC
In the Asia-Pacific region, the Expanded Polystyrene (EPS) market has witnessed a notable decline during the second quarter of 2023. The price of Expanded Polystyrene FOB Qingdao (China) experienced a significant decrement of approximately 6% within Q2. A decrease in demand from prominent sectors, such as the packaging and plastic industries, primarily triggered the market's initial descent. As the second month of Q2 unfolded, the EPS market condition remained stable in a state of moderate, with businesses having already secured a substantial volume of product in the preceding month, ensuring a well-suppled region. However, the month of June brought another challenge, as demand from downstream industries experienced a further decline in China. Despite attractive spot price offers, buyers approached with caution, as an abundance of affordable inventories within the domestic market influenced their decision-making. This led sellers to resort to discounts to stimulate transactions. Adding to the complexities of the eps market, a decline in export activities and weak feedstock styrene prices posed additional pressure on the EPS market sentiments. Weak crude oil prices also played a pivotal role in supporting the downward trajectory of EPS prices in the Chinese region.
Europe
Expanded polystyrene (EPS) has experienced a noticeable decline in the second quarter of 2023 in the European market. The price of Expanded Polystyrene FD Rotterdam (Netherlands) showcased a decrement of approximately (5%) within Q2. At the beginning of Q2, the price of EPS showcased a declining price trend in the European region, fueled by a decrease in demand from the packaging and Insulation sector. Coming to the second month of Q2, the market fundamentals remained moderate as businesses had already procured a substantial amount of the product in the previous month, and the region was well supplied with the availability of the product. Furthermore, in the month of June, there was again a decline in demand from the downstream industries in the European countries has witnessed. Despite the lower spot price offers, buyers were hesitant to place high-volume orders amid the Overflow of Cheap inventories in the domestic market, and the sellers were bound to offer discounts to increase market transactions. The market remained hampered by slipping demand coupled with fluctuating feedstock Styrene prices. Economic uncertainty and recession fear in the European region also continued to govern market sentiments.
For the Quarter Ending March 2023
North America
Expanded Polystyrene costs have fallen during Q1 of 2023, and as a result, there hasn't been much fluctuation in the cost of the product across the American market. For the remaining months of the quarter, this offers a continuation of low-price volatility. Expanded Polystyrene prices were seen to be steady on a downward note in the US market in March. The US labor shortage and supply chain issues further exacerbated the situation. Expanded Polystyrene was available in larger quantities from regional traders and suppliers than the market's surplus. Reports state that the downstream inquiries coincided with a decline in the offtakes and production rates.
Europe
The Expanded Polystyrene market exhibited unfavorable market sentiments throughout the first quarter of 2023. Prices for Expanded Polystyrene remained low as a result of fluctuating regional market demand and changing upstream crude oil prices on the global market. The price of Expanded Polystyrene continued to decline during the quarter, despite a little stabilization of the inflation rate in the European region. As the quarter came to a close, freight rates in the European region, fell, which affected the general tone of the market and lessened the pressure on prices brought on by growing polymer prices. Styrene and Polymer industries showcased slow demand impacting the final prices of Expanded Polystyrene in the European market.
APAC
Expanded Polystyrene consumption in the Asian Pacific market experienced a considerable decline in the first quarter of 2023. However, the only criteria considered for downstream procurement was the demand, which remained mostly weak during the quarter. The slowness of Indian queries was also a result of the prolonged weak trading environment. As a result, business in the Southeast Asian markets remained sluggish, and Chinese traders continued to exercise cautiousness since they were aware that foreign companies were offering discounts on their goods. A series of downturns in upstream prices that occurred in Q1 also helped companies increase production and later stockpile, which led to a surplus of supply in the region.
For the Quarter Ending December 2022
North America
In the North American region, the market sentiments of Expanded Polystyrene fluctuated throughout the Fourth quarter on account of the slow demand outlook. In the initial months of Q4 2022, the price of feedstock Styrene was stagnant, which kept the downstream EPS prices on the lower side. The regional mid-quarter sales trend in the automotive industry steadied and therefore caused an increase in operational rate, which kept prices stable. In December, as the US market's production slowed down owing to storm Elliot and the Christmas holidays, prices started to fall toward the conclusion of the quarter. The final prices of EPS in the North American region were impacted proportionally by the drop in demand from car tyre makers. The EPS at the conclusion of the fourth quarter was 2455/MT DEL Texas.
APAC
The market dynamics for Expanded Polystyrene fell hurriedly in the fourth quarter of 2022 as demand for the material fell in China. China maintained calm during the quarter as COVID lockdown restrictions were implemented by government officials. Feedstock prices in the area have an impact on both the oversupply of the product and its cheap production costs. The price of EPS at the beginning of the quarter has dropped significantly, and the demand prognosis is still dim. Suppliers only saw a slight decline in product inquiries in the last quarter as buyers tended to adopt a wait-and-see attitude due to the impending new year. The market prices for EPS were estimated to be USD 1545/MT FOB Qingdao toward the end of the quarter.
Europe
The overall market trend of Expanded Polystyrene moved southwards on the back of declining demand for the product from the automotive and construction industries. New orders decreased during the quarter because of the inflammatory rate and rising energy prices, which became one of the reasons Trinseo shut down its operations in Europe. As a result of the European Union's oil price cap, fuel, and energy prices have increased in the European market. Availability of adequate feed and manufacturing facilities for end use, together with heightened supply at the port in Hamburg, Germany. The prices of EPS kept falling as the holiday season drew near, despite an increase in feedstock styrene prices. This was because demand was weak.
For the Quarter Ending September 2022
North America
In Q3, Expanded Polystyrene prices increased as American Styrene's, one of the major producers of Expanded Polystyrene, declared a jump in the material's price, which substantially affected final local prices. The demand from the packaging sector and for thermoplastic insulated containers also continues to boost market sentiments for Expanded Polystyrene in the US market. The market dynamics for US-Expanded Polystyrene turned negative during August week due to falling feedstock prices. Inflated Polystyrene production costs decreased together with the price of domestic crude oil. Demand for goods made of Expanded Polystyrene has declined in the US market due to high commodity prices forcing end users to prioritize their needs.
APAC
The price of Expanded Polystyrene in the APAC region continued to decline during the third quarter of 2022. The decline in crude prices in the global market significantly influences the Expanded Polystyrene market sentiments. Expanded Polystyrene prices were impacted proportionally by the continued decline in feedstock Styrene pricing in the Chinese market. While the demand for the product from downstream industries like food packaging and electrical appliances remained sluggish, the Chinese market displayed a low product manufacturing rate of Expanded Polystyrene throughout the week. Additionally, the demand for packaging and insulation for electrical appliances is continuing to drop in India, which has an immediate influence on the price of Expanded Polystyrene.
Europe
The European market's prices for Expanded Polystyrene continue to fall this quarter due to the general inflation of commodity prices. The main factor influencing pricing trends for Expanded Polystyrene was high production costs. The severe heat waves in Germany raised energy costs which hampered the production rates during the third quarter. The European Union's political restrictions made it difficult for crude oil and gasoline to be transported freely from their source nations, consequently increasing the cost of producing Expanded Polystyrene. In addition, the Expanded Polystyrene price was impacted by the price of feedstock Styrene in the German market, which remained on the lower end throughout the quarter. Producers cut their output rates due to weaker demand and higher utility prices.
For the Quarter Ending June 2022
North America
The overall market trend of Expanded Polystyrene remained influential in the North American market. Major players of expanded Polystyrene quoted the prices as USD 3315 per MT, Grey DEL Texas, the USA, towards the quarter-end. Compared with Q1 of 202, the prices declined in the second quarter due to a lack of feed supply from Asian countries. The primary factor impacting the prices is the inclined prices of feed and styrene in the regional market. Crude oil prices remained on the high edge, significantly impacting the Expanded Polystyrene market. The demand from the packaging and food sectors remained active throughout the quarter. Moreover, giant Expanded Polystyrene producers increased the regional market prices. These facets governed the market sentiments of Expanded Polystyrene in the North American market.
Asia Pacific
Second-quarter of 2022 showcased stagnancy in the Asia-Pacific market compared with Q1. The prices got assembled at USD 1800 per MT, FOB Qingdao, China, towards the quarter-end. Countries like China, India, and South Korea faced higher crude oil prices, rising feedstock, and styrene prices. Furthermore, ongoing COVID restrictions in China halted the operational rate of Expanded Polystyrene as the demand also remained quiet. High electricity prices and labor shortage became the key factors for the high production cost of Expanded Polystyrene in Asia-Pacific. Downstream sectors such as packaging and construction remained static, influencing Expanded Polystyrene's market prices.
Europe
The market sentiments of Expanded Polystyrene surged throughout the second quarter on the back of brisked commodity prices in the European market. Major manufacturers quoted the prices as USD 2949 per MT, FD Hamburg, Germany, towards the quarter-end. Political sanctions implied by the European Union restricted smooth transportations of crude oil and gasoline from supplying countries, raising the production cost of Expanded Polystyrene. Major manufacturers of Expanded Polystyrene faced supply and gasoline shortages, leading to high production costs. AS a result, these manufacturers, such as INEOS Styrolution, raised the prices of Expanded Polystyrene in the regional market. Strikes in different European countries halted the production activity of Expanded Polystyrene in the regional market.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, prices of Expanded Polystyrene witnessed an increment of approximately 22% in comparison to Q4 of 2021. Other factor during the market of Expanded Polystyrene is the major downstream sectors requiring. Substantial pick-up in market activities in the North American region directly impacted the demand for Expanded Polystyrene from majority of the segments. Expanded Polystyrene was widely consumed for applications such as packaging and insulation throughout Q1-2022. The prices of Expanded Polystyrene were quoted at USD 2760/MT, DEL Texas USA in the month of January.
Asia Pacific
In Q1 of 2022, the market of Expanded Polystyrene surged by 18% in comparison with Q4 of 2021 owing to the increased feedstock Styrene monomer prices due to the political stress between Russia and Ukraine. Apart from increased prices, supply shortage occurred, forcing the manufacturers to boost the production margins in order to cater to strong offtakes from end users. Segments such as construction, packaging, insulation have shown upsurge in due to substantial market activities. Limited availability of containers led to supply disruption and high freight charges in the Asia Pacific market. Towards the start of quarter, the prices of Expanded Polystyrene were assessed at USD 1882/MT, Ex-Mumbai, India and USD 2045/MT Ex-Mumbai, India in the first quarter end of 2022.
Europe
Prices of Expanded Polystyrene observed mixed sentiments throughout the first quarter of 2022 owing to the increase in feedstock Styrene Monomer prices. The crude oil surge led to high production cost of Benzene which is an upstream of Styrene in the European regions. When compared with Q4 of 2021, the prices in Q1 of 2022 saw a surge by nearly 8% because of firm demand from downstream segments such as packaging. Major supplying countries like China went under lockdown leading to halt in the production, consequently causing a supply shortage. Prices of Expanded Polystyrene were observed at USD 2636/MT, FD Rotterdam, Netherland in the month of January and USD 2572/MT, FD Rotterdam, Netherland towards the quarter end.
For the Quarter Ending December 2021
North America
In Q4, the costs of Expanded Polystyrene saw to be slipped contrasted and Q2 and Q1. The costs hit their most reduced somewhat recently of December. Expanded Polystyrene trades declined in the astute exchanges with China and Europe amid US domestic stock lengthdue to feeble derivative Polystyrene operating rate. The feedstock Polystyrene prices dropped to $2140/ton GPPS FAS Houston. One more factor that come play is the dominance of Taiwan in the feedstock Styrene trade in the globe. However, the solid freight charges and demand disintegration fell the US Expanded Polystyrene prices on the lookout. Demand from downstream insulation and packaging of electrical goods industries has mellow in this quarter as irregularity in volume admissions has been seen from key Expanded Polystyrene producers.
Asia Pacific
In Q4, the prices of Expanded Polystyrene surged to the new heights with inclined trajectory compared with Q2 and Q3. Increase in feedstock Styrene prices due to its shortage gives boost to the prices. Towards the end of the year, the prices of Expanded Polystyrene reached to $1740/ton Ex-Mumbai. Consistent surge in raw material cost and rising demand from domestic end user segment pushed up the price of EPS in this region. Upsurged market sentiments under optimism of forthcoming New Year, increased the demand for the product. In addition, raw material prices are also rising on the back of soaring freight cost and limited availability of shipping containers. There wide use in Foam and construction industry gave support to sale volume seems to be recovering in this quarter.
Europe
In Q4, the prices followed the upper trend with increase in feedstock and freight charges in the European regions. In December, European standard Expanded Polystyrene prices increases despite lower demand toward the end of the year holiday period and limited cost development. Tight supply because of limited feedstock accelerated the prices of the product. On 20 December, Total declared force majeure for feedstock Polystyrene production in Carling, France due to strike at Arkema which affected the market and surged the price in the domestic market. Production outage and higher Benzene cost impacted several European facilities.
For the Quarter Ending September 2021
North America
In Q3 2021, Expanded Polystyrene market outlook appeared bullish with robust demand from the downstream sectors amidst tight supply in North America. In the mid of the quarter, several upstream Styrene manufacturing facilities were compelled to shut their production as a repercussion of the Ida hurricane for around two weeks. For Instance, in Louisiana, AmSty, shut down its Styrene production plant having capacity of 950KTPA ahead of the arrival of Ida hurricane as a contingency plan. The situation resulted into the constrained availability of the feedstock that consequently pushed up the prices of EPS in this timeframe. Rebound in the industrial as well commercial activities bolstered the demand for EPS that further contributed to the hike in its pricing trend.
Asia Pacific
In the Asian Pacific region, Expanded Polystyrene market encountered restrained supplies of the raw materials backed by the several factors that led to the spike in the prices of EPS during Q3 of 2021. In China, many manufacturers were compelled to cut down their production rates due to the energy crises which led to the supply chain disruption and consequently impacted the overall EPS market in the region. Similarly, in India a marginal rise in the values of EPS was observed during this quarter due to the delayed imports as a spillover effect that led to the limited availability of the product. In addition, constant hike in the freight charges and extreme shortage of shipping containers further sent ripples to the prices of EPS in the region. Thus, Ex-Mumbai Expanded Polystyrene prices stood at USD 1630.84 per MT in September.
Europe
In Europe, EPS market remained under pressure during Q3 backed by the lower production rates as many manufacturers in Europe curtailed their production rates due to the energy crisis. Moreover, spike in the feedstock prices also sent ripples to the values of Expanded Polystyrene in this timeframe. Further, lower imports, exorbitant freight charges across the Europe-US and Europe- Asia interoceanic trade routes and shortage of shipping containers also aided the inflation in the prices of EPS in this quarter. Hence, constraint supplies and sturdy demand from the downstream sectors supported the pricing trend of EPS in Europe.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, EPS supplies in the North American region saw some recovery after remaining dented for a larger part of Q1 due to the impact of polar winter storm Uri. Several Styrene manufacturing facilities ramped up the production and ensured ample availability of the feedstock. Amidst increasing demand, several EPS producers were seen investing in EPS foam recycling. For e.g., towards the end of June, Canada’s NexKemia announced partnership with Eco-Captation and the township of Potton towards facilitating recycling of Expanded and Extruded Polystyrene foam. Demand stood upbeat from the building and construction sector due to increased investment in the residential remodelling and construction in Canada and USA. In terms of pricing, high feedstock costs, along with dented supply and demand dynamics, necessitated positive correction in prices for several US Expandable Polystyrene producers. expanded polystyrene (by 77%). The increase in the prime cost of construction materials has reached 95% since January.
Asia Pacific
EPS supplies were seriously pressured for a larger part of Q2 owing to turnaround at several feedstock Styrene facilities in China in May and June. However, the commissioning of some new facilities towards the end of the Q2 eased the supply conditions in China. The unprecedented surge in the COVID cases in India restricted the industrial and commercial activities which impacted the market outlook in the second quarter of 2021. Spot availability remained affected due to feedstock related constraints which forced manufacturers to raise the regional offers. The pricing trend in India showed fluctuations in the narrow range with Ex-Works Mumbai offers trading at USD 1502 per tonne in June.
Europe
EPS supplies in the second quarter showed QoQ improvement extending combined impact of improved operational rates in production facilities and better quantity of the imports from the US. Better availability of upstream Styrene eased the production at the manufacturing plants although pricing trend was buoyed by persistent shortage in the regional availability. Demand peaked from the downstream building and construction sector due to economic rebound. In mid-June, Netherlands-based PolyStyreneLoop co-operative commissioned its 3.3 KTPA Expanded Polystyrene (EPS) recycling plant in Terneuzen, the Netherlands, to facilitate closed-loop recycling of the EPS waste.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, the American Expanded Polystyrene market was largely influenced by the dented supply dynamics as upstream styrene supplies remained tight, as the several producing belts remained shut due to extreme freeze weather conditions in the US gulf region in mid-February. However, the demand surged as the utilization improved from the downstream packaging and construction sector. Offtakes took a major hit as disposable food service provided much needed support for PS demand. In terms of pricing, raw material pricing took a major toll on both Polystyrene and EPS producers across the region.
Asia-Pacific
EPS supplies in the Asian region improved as many production facilities were heard operating at maximum efficiencies after prolonged turnaround period so as to cater to sharp recovery in the demand with economic rebound. However, the demand remained largely driven by the offtakes from the packaging sector. Increased prices of upstream Styrene proportionally surged the prices of Expanded Polystyrene in the Asian Markets. The prices of Expanded Polystyrene in China during March were averaged around USD 1613/ton. Sensing sharp uptick in the demand of polystyrene and expandable polystyrene (EPS) segments, an Indian manufacturer revealed its capacity expansion plant in the coming quarters.
Europe
The supplies were tight during the Q1 2021 in European region, due to the shortage of feedstock, as the several major plants declared force majeure in February amid freeze weather in the Northwest European region. However, the demand witnessed mixed results as the second wave of COVID caused the lockdown in major economies across the region resulting in restricted mobility and commercial activities, followed by the improved consumption from the packaging sector.
For the Quarter Ending September 2020
North America
With one producer facing production issue, supplies started to tighten towards the end of Q3, thereby hampering regional availability. Apart from that, availability of EPS in North America remained sufficient to meet the market needs. Demand picked up in Q3, sufficient to pull over the supply side. Owning to long delivery time, interest in imports thinned during the quarter. On spec demand showed a sharp recovery to pre-covid levels in Q3 due to ease in Covid-related restrictions on economic activity. Strong growth seen in the residential construction, majorly in the sub urban areas and from food packaging sector helped producers in fetching marked gains.
Asia
China’s export EPS supply was tightened after a short-term shutdown was announce at a manufacturing unit in South China, Domestic supply in China was also on the tighter end due to permanent closures of some plants in East China. However, supply levels in other Asian countries remained stable due to unchanged manufacturing activities. Increased construction activities in Japan, Malaysia and Indonesia were indicative of pent-up demand for the product which is expected to march higher moving into Q4. Also, the much-awaited revival of automotive industry, triggered an upsurge in the demand across the Indian and Chinese markets. Buying interest in Malaysia was relatively strong on some recovery observed in the construction sector. In India, FOB price of Expanded Polystyrene was averaged around USD 1350 per tonne during the third quarter, resisting any further upward movement since Q2 2020.
Europe
Maintenance of high stocks and ample inventories kept the EPS supply relatively balance throughout the third quarter, when demand was showing gradual improvement. However, for a relatively short span, supply tightness was observed in August due to lower output levels maintained during majority of Q2. Also, import volumes dropped much lower than usual with pricing largely non-competitive. Regional traders observed stronger demand from white goods packaging, particularly in July and September. However, construction demand remained soft, with the industry still grappling with the pandemic impact amid fears of second wave of infections pressuring the overall activity.
