For the Quarter Ending December 2024
North America
In Q4 2024, the PPS market in the USA saw steady price increases, primarily driven by sustained demand from key sectors like automotive and electronics. The recovery in the automotive industry supported the ongoing need for high-performance materials such as PPS, which is essential for producing lightweight and durable components in vehicles, including electric and hybrid models.
As the demand for electric vehicles (EVs) continued to grow, the PPS market saw heightened activity in both domestic consumption and export markets. The automotive sector's increasing reliance on advanced materials like PPS for thermal management and durability further supported this trend. Additionally, demand from the electrical and electronics industries remained stable, reflecting the broad industrial applications of PPS.
Despite some challenges in global supply chains, including shipping delays and rising production costs, the USA's robust domestic production base and well-established logistics infrastructure helped ensure the continued availability of PPS. Overall, the market remained resilient in Q4, with strong demand from key sectors driving price increases and keeping the outlook positive for the near future.
APAC
In Q4 2024, the PPS market in the APAC region experienced significant price increases, driven by robust demand from the automotive and new energy vehicle (NEV) sectors. In October, PPS prices in China rose by 3.6%, with strong performance in the automotive industry, where passenger vehicle sales increased by 7.0% year-on-year. The recovery in the automotive sector, especially in electric and hybrid vehicles, boosted the demand for PPS, which is essential in manufacturing lightweight and durable automotive components.
November saw a more pronounced 10.3% price surge, fueled by the record-breaking sales of NEVs, which grew by 47.4% year-on-year. This strong performance in the NEV sector significantly contributed to PPS demand, as the material is key in producing high-performance components such as connectors and sensors.
By December, PPS export prices surged by 11%, supported by strong demand from markets like Thailand and India. Despite challenges such as rising production costs and global freight disruptions, China's stable production and efficient logistics helped meet both domestic and international demand. While domestic automotive demand remained stable, exports to key markets continued to drive growth, with Thailand seeing a notable rise in PPS imports.
Europe
In Q4 2024, the European PPS market experienced upward price trends, driven primarily by the robust demand from the automotive sector, despite logistical challenges. October saw a 4% increase in PPS prices, largely fueled by rising automotive sales in Germany, especially in the plug-in hybrid electric vehicle (PHEV) market. The automotive industry's recovery and steady demand from industrial applications supported this growth. However, supply chain disruptions, including rising freight rates and global shipping delays, slightly impacted the market, though Europe’s integrated infrastructure kept supply levels stable.
November witnessed a further price increase of 8.3%, largely due to the surge in PHEV registrations, despite a slight decline in overall passenger car registrations. Geopolitical factors, such as the EU-China trade negotiations over electric vehicle tariffs, influenced the PPS market, as potential improvements in trade dynamics could support future demand.
By December, PPS export prices in Europe faced slight pressure, with a minor decline of 0.7%. Domestic demand was subdued, mainly due to lower automotive sales and changes in vehicle type preferences, but export activity remained strong, particularly in Southeast Asia.
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.
