For the Quarter Ending September 2024
North America
Q3 2024 saw limited price movements for the PPS, with fluctuations contained within a narrow range due to several interacting factors. The U.S. economy sent mixed signals, balancing strength with inflation concerns and geopolitical risks.
Supply conditions were influenced by stable manufacturing output and evolving trade conditions. The Producer Price Index (PPI) for manufacturing fell slightly from 249.624 in Q2 to 248.383 in Q3, suggesting modest production cost relief. Rebuilding inventories, after earlier drawdowns, contributed to Q2 GDP growth of 3.0%, with 2.7% growth expected for the full year.
Consumer spending and business investments, bolstered by the CHIPS Act and other policies, remained key drivers of demand. Meanwhile, inflation eased, dipping below 3.0% by July. Yet, geopolitical tensions in Ukraine and the Middle East, coupled with possible import tariffs, created risks for supply chains and trade flows. Although the Fed’s planned rate cuts aim to support spending, uncertainties in labor dynamics and trade policies could weigh on supply conditions into 2025.
Asia
In the APAC region during Q3 2024, the Polyphenylene Sulfide (PPS) market experienced an overall upward trend in prices. This increase was primarily influenced by a combination of factors such as robust industrial activity, rising demand from key sectors, and supply chain challenges. The market saw stable supply conditions, with demand outpacing availability, leading to price hikes. These dynamics were particularly pronounced in China, where the market faced disruptions in trade routes and increased shipping costs, further impacting prices. The quarter showed a consistent positive sentiment in pricing, with a 1% increase from the previous quarter. The price change from the same quarter last year was notable, reflecting the volatile nature of the market. Despite some fluctuations, the pricing environment remained bullish throughout the quarter, culminating in a closing price of USD 3940/MT for Polyphenylene Sulfide GF40% FOB Shanghai in China.
Europe
In Q3 2024, the European Polyphenylene Sulfide (PPS) market witnessed a decline in prices, with Germany experiencing the most significant changes. This downward trend can be attributed to various factors influencing market dynamics. Supply chain disruptions, including transportation challenges and fluctuating raw material costs, played a crucial role in driving prices lower. The overall demand for PPS remained moderate, with sluggish performance in key sectors like manufacturing and automotive contributing to the negative price sentiment. Additionally, adverse weather conditions impacting construction activities further dampened demand for PPS in the region. Germany, a major player in the European market, saw notable price decreases compared to the same quarter last year. The price change from the previous quarter recorded a decline of 1%, reflecting the ongoing downward trajectory. The second half of the quarter saw prices decrease by 1% compared to the first half, indicating a consistent negative trend throughout the period. The quarter-ending price for Polyphenylene Sulfide GF40% FOB Hamburg in Germany stood at USD 7950/MT, highlighting the prevailing decreasing pricing environment in the region.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Polyphenylene Sulfide (PPS) market encountered a predominantly bearish trend, driven primarily by diminished demand from the downstream automotive sector. Persistent economic uncertainty and rising interest rates have continued to erode consumer confidence, leading to a weakening in transactions within the automotive industry. This decline has been particularly pronounced in the electric vehicle (EV) segment, which relies heavily on PPS for manufacturing components.
Despite a modest increase in overall vehicle sales—7.9 million new vehicles sold in the first half of 2024, marking a 3% rise from the same period last year—the weakening consumer sentiment has negatively impacted the PPS market. The increased sales did little to offset the broader downturn in demand for automotive components.
Further compounding the challenges, significant disruptions at major U.S. ports, including the collapse of the Baltimore Bridge, have severely hampered the circulation and distribution of PPS. These logistical issues have exacerbated the already strained market conditions, contributing to an overall negative sentiment in the North American PPS market.
As a result, the market has faced a difficult environment, characterized by sluggish demand, operational disruptions, and an ongoing lack of consumer confidence, all of which have shaped a challenging landscape for PPS stakeholders throughout the quarter.
APAC
In the second quarter of 2024, the Polyphenylene Sulfide (PPS) market in the APAC region experienced a notable drop in prices due to a combination of key factors. The decline in global crude oil prices, which fell by approximately 7% during the quarter, led to a significant reduction in production costs for petrochemical products, including PPS. This decrease in production costs, however, was not enough to counteract the impact of waning demand. Both domestic and international markets showed weakened interest in PPS, exacerbated by a downturn in the automotive sector and the broader economic effects of monetary tightening and high interest rates.
Despite a strong performance in exports, particularly in the semiconductor sector, domestic consumption of PPS remained weak, reflecting broader economic challenges across the region. South Korea, in particular, saw the most pronounced fluctuations in PPS prices within the APAC region. The market in South Korea experienced a significant decline in PPS prices, driven by a combination of stable but moderate supply levels and the absence of major supply chain disruptions or production cutbacks. Seasonal trends and a generally bearish sentiment in the freight market, marked by rising rates and capacity constraints, also contributed to the downward pressure on prices.
Comparing the first and second halves of Q2, PPS prices in South Korea fell by 3%, on top of a modest 1% decrease from the previous quarter. By the end of the quarter, PPS prices were recorded at USD 4200 per metric ton, FOB Busan. This reflects a predominantly negative pricing environment, characterized by a steady decline throughout the period.
Overall, the PPS market in Q2 2024 was marked by a downward trend, driven by lower production costs, reduced demand, and ongoing economic pressures. The interplay of these factors, combined with seasonal and market-specific challenges, underscored a challenging period for PPS pricing across the APAC region.
Europe
In the second quarter of 2024, the European Polyphenylene Sulfide (PPS) market saw a notable drop in prices, influenced by several key factors. The quarter was marked by stable supply conditions, with ample product availability and normal production rates. While there were sporadic supply disruptions in Asia, these did not significantly impact the European market, thanks to robust domestic production. However, the market faced weak demand, particularly from the automotive and construction sectors, which were both affected by broader economic uncertainties. The construction industry, in particular, struggled with reduced activities in residential and public projects, exacerbating the downward pressure on PPS prices.Germany, which experienced the most pronounced price fluctuations, reflected a bearish market sentiment throughout the quarter. Seasonal factors played a role, as demand typically wanes during the peak summer months, contributing to falling prices. The correlation between reduced demand in the automotive sector—particularly due to stagnation in electric vehicle sales—and PPS pricing was evident. Additionally, the anticipated decrease in export inquiries and stable but low stock levels further influenced the price trajectory.
Prices for PPS compared to the same quarter last year showed a notable decline, with a modest 1% decrease from the previous quarter of 2024. Within Q2, prices also saw a gradual decline of 1%, highlighting a continuous downward trend. By the end of the quarter, the price for Polyphenylene Sulfide GF40% FOB Hamburg in Germany settled at USD 8100 per metric ton. This figure underscores a predominantly negative pricing environment, reflecting the challenging market conditions throughout Q2 2024. Despite these challenges, there were no significant plant shutdowns reported, ensuring a steady, albeit cautious, market outlook.
Overall, the PPS market in Europe during Q2 2024 was characterized by a decline in prices driven by stable supply conditions, weak demand from key sectors, and seasonal effects, underscoring a period of market adjustment amidst broader economic uncertainties.
For the Quarter Ending March 2024
North America
The pricing dynamics of Polyphenylene Sulfide (PPS) in North America during the first quarter of 2024 have been shaped by various factors, resulting in fluctuating pricing dynamics. Overall, the market exhibited stability, although with occasional fluctuations and an initial decline in prices.
One of the primary influencers of PPS prices in the region has been the demand from the automotive industry, which has been moderate and subject to fluctuations influenced by factors like winter lulls and subdued demand. Following the winter season, demand showed slight improvement, leading to price hikes. Moreover, global supply constraints and the availability of more affordable imports have also contributed to price volatility.
In the United States specifically, PPS prices underwent significant changes. Despite the price uptick from the middle of the quarter onwards, demand in the USA remained relatively stable to moderate, primarily propelled by the automotive sector. Overall, the pricing trend for PPS in Q1 2024 has been mixed, with some countries experiencing stability while others faced fluctuations. The market has been influenced by various factors, including demand dynamics, supply limitations, and uncertainties in global trade.
APAC
Polyphenylene Sulfide (PPS) pricing in the APAC region for Q1 2024 has been influenced by various factors, resulting in a mixed pricing environment. In general, the market has experienced stability, with some fluctuations and declines in certain countries. One of the significant factors impacting PPS prices in the region is the overall demand from the automotive industry. Demand has been moderate, with fluctuations due to factors such as post-festive lull and winter dullness. In some countries, demand has improved marginally, while in others, it has remained low. Additionally, global supply restrictions and the availability of cheaper imports have also played a role in price fluctuations. In India, specifically, PPS prices have seen notable changes. In January 2024, prices increased by 8%, driven by a shortage of materials in the market and escalated freight charges. Despite the price increase, demand in India remained stable to moderate, driven primarily by the automotive sector. Overall, the pricing trend for PPS in Q1 2024 has been mixed, with some countries experiencing stability while others have seen fluctuations. The market has been influenced by factors such as demand dynamics, supply restrictions, and global trade uncertainties. However, the quarter-ending price of Polyphenylene Sulfide (PPS) GF-40% CFR JNPT in India was recorded at USD 6775/MT, reflecting a stable pricing environment in the country.
Europe
In the first quarter of 2024, Polyphenylene Sulfide (PPS) prices in Europe witnessed significant fluctuations, particularly impacting Germany. This period saw a largely consistent downward trend in PPS pricing, characterized by depreciation. Several factors contributed to these price declines, including a decrease in demand from the automotive industry downstream. Germany, grappling with challenging economic conditions, faced additional hurdles in maintaining stable prices. Furthermore, geopolitical tensions in the Middle East, disruptions in the supply chain, and transportation challenges due to Houthi attacks in the Red Sea added complexity to market conditions and influenced price dynamics. A thorough analysis of quarterly price movements indicates a notable decrease compared to the same period in the previous year. Specifically in Germany, pricing dynamics were influenced by a bearish sentiment, driven by ample supply and subdued demand. As the quarter progressed, prices continued to slide due to declining consumption and economic slowdown. In summary, the European market, especially in Germany, encountered significant pricing challenges during the first quarter of 2024. The prevailing trend was negative, with prices declining due to weakened demand and economic uncertainties. However, there were signs of stabilization towards the end of the quarter.
For the Quarter Ending December 2023
North America
The Polyphenylene Sulfide (PPS) market in the USA noticed a bullish trend during the last quarter of 2023 opting for a stable market condition. The period was marked by a slight involvement of factors influencing supply, demand, and pricing dynamics.
During the timeframe there was a marginal incline in PPS prices, driven by specific regional demands or supply chain involvements. However, this trend could have been counteracted by broader global economic shifts, leading to a subsequent decline in prices.
Cheaper raw material imports likely played a key role in shaping market conditions. The stability of the supply chain was crucial during this period, with no reported disruptions ensuring a steady availability of PPS in the market. The overall market sentiment has been influenced by factors such as festive demand, international economic trends as well as downstream industry-specific performance. During the last quarter of 2023, the Polyphenylene Sulfide (PPS) market in the USA revealed diverse dynamics in end-use industries.
Industries such as automotive, construction, and textiles played crucial roles, demonstrating improved performance during the quarter. Despite market fluctuations, the demand for PPS remained significant, particularly in automotive manufacturing, where the material finds applications in components requiring high temperature and chemical resistance. The construction sector also contributed to the demand, utilizing PPS in various applications. The persistence of these downstream industries highlighted the adaptability and importance of PPS in critical sectors, contributing to the overall market scenario in the USA.
APAC
The Polyphenylene Sulfide (PPS) price in last quarter expresses a bullish trend in the Asian pacific region. Supply remains at a moderate level both domestically and globally; however, destocking activities continue to impact the overall pricing dynamic during December in some countries. In Chinese domestic market, it has been seen a surge of total USD 80/MT between October and December. The market's enlargement reflects the involvement of factors such as festive demand, supply chain stability, and broader economic trends, creating a nuanced and dynamic market scenario. On the other hand, Indian market witnesses a mixed sentiments during the entire timeframe. From October the market observes a bullish trend, with an average price surge of 9% in November primarily driven by the festive season, thereby supporting an upward trajectory in prices. During the timeframe supply remains moderate and reportedly, there was not any production-related issue in the domestic market. But in November month, it was an opposite observation, market witnesses a bearish trend, The Polyphenylene sulfide price (PPS) slight decline due a post-festive lull as traders already had ample inventories and downstream market experienced lackluster sales owing to post festive factors. Conclusively, the demand for the PPS will remain enhanced in coming months owing to the rapid industrialization activities, notably in increasing economies.
EUROPE
In the European Polyphenylene Sulfide (PPS) market during the last quarter of 2023, conditions exhibited fluctuating dynamic. The market experienced this trend influenced by various factors including supply chain instability. In Germany it was a continuation of surge in PPS value, noticeably, it was an upsurge of total USD 200/MT in the end of quarter, as compared to October. Cheaper imports played a significant role in shaping market conditions, reflecting the interconnectedness of the European PPS market with the global market. Owing to the domestic bullish trend, downstream consumer goods manufacturing industries got benefited, particularly those aligned with festive demand or other seasonal factors in European region. Initially, there was a marginal increase in PPS prices, potentially driven by specific regional demands or supply chain pressures. The market's responsiveness to global economic shifts, coupled with the influence of festivity-driven demands, created a nuanced scenario. As the year concluded, the European PPS market reflected a delicate balance between regional factors and broader international dynamics, emphasizing the need for a comprehensive understanding of both local and global influences on pricing and demand.
For the Quarter Ending September 2023
North America
The pricing trends of Polyphenylene Sulphide (PPS) exhibited a sluggish pattern in July, with gradual improvements in the subsequent months. This shift was notably influenced by the uptick in raw material prices in the U.S. market during the third quarter of 2023. Within the Automotive sector, a key downstream industry for PPS, there was an overall decline in demand throughout the quarter. This decline could be primarily attributed to the rise in interest rates and the inflationary pressures affecting the U.S. region. Companies operating in this sector reported that reduced new sales were a consequence of customer hesitancy and a decreased motivation to spend, particularly in the face of challenging demand conditions. Manufacturers within this sector further reduced their input material procurement, both pre- and post-production inventories, as part of their efforts to optimize stock levels and implement cost-cutting measures amid subdued domestic and international demand. The weakened demand for input materials also had an impact on supplier delivery times, which gradually improved throughout the entire third quarter as vendor performance adapted to these market conditions.
APAC
During the third quarter of 2023, the price trajectory of Polyphenylene Sulphide (PPS) within Asian markets displayed a notable decline when compared to the previous quarter. This downward trend was chiefly attributed to the subdued performance of key downstream sectors, namely the Automotive and construction industries. The Automotive sector encountered challenges, primarily driven by reduced domestic market orders, which were significantly influenced by the escalating interest rates that adversely affected the demand for PPS. Furthermore, in the latter part of the quarter, raw material prices experienced an upswing due to the global increase in crude oil prices. This increase was primarily instigated by production cuts initiated by OPEC+ countries during the third quarter. Within the Thai market, the pricing dynamics of PPS mirrored those of other Asian markets, as it relied on imports to fulfill its domestic demands. Moreover, the overall demand from the Asian Automotive industry remained lackluster, resulting in the accumulation of PPS inventories in various regional markets across Asia.
Europe
In the European market, there was a slight improvement in the price of Polyphenylene Sulphide (PPS) compared to the previous quarter. This improvement was driven by heightened cost pressures stemming from increased prices of raw material and crude oil. Despite this uptick in PPS prices, companies reported that the widespread global economic downturn was negatively affecting demand across various geographical regions. Further, the downstream Automotive industry in the Eurozone region faced a bearish trend, and this can be partly attributed to the influence of higher interest rates. The combination of these factors contributed to the overall pricing and demand dynamics in the European PPS market. Concurrently, data from Eurostat revealed an increase in producer prices in the European industrial sector as a whole, rising from 137.1 in July 2023 to 137.7 in August 2023. This indicated an incremental improvement in product consumption within the European market during Q3 2023 and contributed to the overall price uptrend for PPS in the region.
For the Quarter Ending June 2023
North America
As per the assessment, Polyphenylene Sulfide prices fluctuated in the US market during Q2 2023. As per the data, Polyphenylene Sulfide prices declined marginally during the first month of the quarter i.e., April, and kept on tracing an uptrend for the rest of the quarter. It was observed that the US market, which has been struggling with high inflation and lower-than-expected recovery in economic activities kept affecting the pricing dynamics of several commodities including Polyphenylene Sulfide. Further, during the mid of the quarter, consumption of Polyphenylene Sulfide in the construction sector gradually increased as indicated by the Production price index (FRED) of the Industry of Cement and Concrete Product Manufacturing in the US which rose from 233.3 (May) to 234.1 (June) experienced stronger trading activity than the previous month. The increase in downstream demand elevated the product price in the US market.
APAC
Polyphenylene Sulfide prices followed a downward trajectory throughout the quarter in the Asian market. In May 2023, the Indian market witnessed a significant decline in the price of Polyphenylene Sulfide (PPS) GF-40% CFR JNPT, which decreased by 1.1%. This drop in price was attributed to ample product availability and moderate to low demand from domestic downstream buyers. Cheaper imports from major key Asian countries also influenced the pricing trajectory. The Index of Industrial Production (Manufacturing) fell to 138.1 in April 2023 from 147.1 in March 2023, indicating a significant decline in the country's manufacturing activities. The market situation was described as bullish with a moderate to high supply and moderate to low demand. Traders were uncertain about the continuity of the uptrend in prices. In April 2023, the PPS price rose marginally by 0.9%. The demand for the product kept increasing, leading to a price rise, but a short-term shortage in spot availability was the key factor. Prices had started to decline in the regional markets by the start of the July month, which eased down the prices in the second half of the quarter.
Europe
As per the recent assessment, Polyphenylene Sulfide prices fell during Q2 2023 on the back of low demand from the domestic market amidst ample stocks in the region. The European key players have been battling with high inflationary pressure and low consumer demand. Therefore, on the back of high inflation and prolonged economic dullness, demand for multiple commodities including Polyphenylene Sulfide reduced during this timeframe affecting the pricing dynamics of the product. Furthermore, internal issues of the nation have also been bothering market sentiments, where the violence that erupted in France also affected regional trade activities. Furthermore, as per key economists of the world, Germany eventually went into recession during the mid of the quarter, and the UK has been on the edge. Consequently, overall market sentiments were low throughout the quarter, which reduced the demand of Polyphenylene Sulfide from the downstream industries. Additionally, regional freight charges also remained high throughout this timeframe, but it didn’t affect the prices of Polyphenylene Sulfide in the meantime.
For the Quarter Ending March 2023
North America
In North America, demand for Polyphenylene Sulfide remained moderate to low throughout the first quarter of 2023. The major driving factor behind this demand was slow economic activity despite uninterrupted production in the country. According to data, the North American automotive sector partially improved by the end of the quarter but remained lower than expected due to prolonged inflationary pressure. The frequent price revisions by the FED on domestic interest rates remained a major concern for the country's economy, as it was resisting actual growth and pressuring the demand for the product in the country.
Asia
The Indian market for Polyphenylene Sulfide (PPS) witnessed a slight price increase in March 2023 due to a surge in seasonal demand from downstream industries. The market is currently bullish, with moderate to high demand and moderate supply. The absence of a potential recession threat and improved performance of downstream industries contributed to the current price trajectory. In February 2023, the domestic market for PPS also experienced a slight price increase due to stable demand, while major exporters faced weak demand in their local markets. Overall, Indian traders maintained their prices as demand in India remained comparatively better than in other major economies.
Europe
European economy performed expectedly low due to the repercussion of the Russia-Ukraine war, which has been putting pressure on regional economic activities. As per the data, demand for PPS from the domestic Automotive sector remained low, while other sectors like construction and textiles also performed seasonally low. Despite some disturbances in the supply chain due to snow, supplies remained stable to firm, and the overall demand-supply gap was narrow enough to support the downward price trend. The threat of recession was decreased, generating optimism for future demand.
For the Quarter Ending December 2022
North America
During mid-November, the American market witnessed a seven-month low in goods exports due to weakening global demand and increasing dollar value, creating a declining price trend of upstream sulfur in the last quarter of 2022. Despite the decreasing temperatures and festive holidays at the conclusion of the previous quarter having an effect on the domestic market's upstream benzene production rate, it did not impact the declining price trend of PPS in the USA. The poor performance of the downstream automotive industry in the US during the final quarter of 2022 weakened the buying sentiments of Polyphenylene Sulfide (PPS) in the American market.
APAC
Due to a low production rate, upstream benzene prices in the Asia-Pacific market have been continuously falling. Due to falling feedstock (crude oil) prices in the global market, the final quarter saw a decline; as a result, suppliers and end users stocked up on the commodity leading to the easing of Polyphenylene sulfide (PPS) costs. The poor performance of the downstream automotive sector in the Asian markets has led to weak buying sentiments of PPS, especially in China. A decline in freight charges in the Asian region reduced the demand for upstream Sulphur in the Asian market, abetting the price drop of PPS during Q4 2022.
Europe
The upstream Sulphur market was congested, and downstream demand was high. The expansion of the winter storage market was delayed, and the need for Sulphur was poor, along with easing feedstock crude oil in European markets assisting the steady drop of Polyphenylene sulfide (PPS) price throughout the fourth quarter of 2022. The rising inflation rates in the European region drove down the demand from the downstream automotive industry leading to a poor buying attitude, further contributing to a price drop of PPS in Europe. As the region's seasons changed during Q4 2022, demand for upstream benzene decreased due to the low employment rate, further abetting PPS price drop in the Chinese market.
