For the Quarter Ending September 2024
North America
In Q3 2024, the North American Polystyrene market experienced a challenging period characterized by a steady decrease in prices. A notable 6.9% decline in average prices from the previous quarter highlighted the market's struggle to maintain stability amidst shifting dynamics. The primary drivers of this downward trend included a weakened demand from key sectors such as packaging and construction, alongside persistent oversupply conditions. These factors collectively led to a bearish market sentiment throughout the quarter.
In the United States, price fluctuations were particularly evident. Despite a brief recovery in August, where prices climbed to 1373 USD/MT, the overall market conditions remained under pressure. The decline in demand, coupled with lower production costs influenced by decreasing crude oil prices, further contributed to the downward trajectory. This dynamic created a challenging environment for market participants as they navigated through the fluctuating conditions.
As Q3 came to an end, the price of Polystyrene GPPS FAS Houston settled at USD 1319/MT. This final price reflects the market's ongoing challenges and emphasizes the downward pricing pressure that dominated the quarter, impacting the overall sentiment in the North American market.
APAC
In Q3 2024, the APAC region experienced a gradual decline in Polystyrene prices, with China undergoing notable price adjustments. Several factors shaped the market dynamics in the region, including reduced demand from downstream sectors such as packaging and construction. This weakened demand played a critical role in driving prices downward. Additionally, oversupply in the market, combined with logistical challenges and fluctuations in raw material costs like styrene, contributed to the downward pressure on prices. China, being a key player in the region, saw moderate price fluctuations throughout the quarter. Although the price changes were less drastic than initially expected, the overall trend was negative, with a decrease of around 2.4% from the previous quarter. A smaller price difference between the first and second halves of the quarter highlighted the market's struggle to regain stability amidst these challenges. By the end of Q3, the price of Polystyrene GPPS Ex-Qingdao in China stood at USD 1330/MT, reflecting the consistent downward trend. This final price underscores the difficulties faced by the market during this period, with a subdued pricing environment and ongoing pressure from various external factors.
Europe
During Q3 2024, the European polystyrene market experienced a pronounced decline in prices, driven by multiple factors. The downturn was primarily due to a contraction in the manufacturing sector, leading to decreased demand from key industries such as automotive and construction. Additionally, an oversupply situation, exacerbated by high inventory levels and stable production rates, exerted further downward pressure on prices. The presence of competitively priced imports, particularly from Asia, heightened market competition and pushed local producers to adopt more aggressive pricing strategies. Although energy costs remained volatile, they did not increase sufficiently to provide any upward momentum for prices, maintaining a bearish sentiment. Germany, as a key market in the region, witnessed significant price reductions. The overall trend remained negative, with an 8.2% decrease in prices compared to the previous quarter, illustrating the ongoing market challenges. Seasonal demand upticks failed to materialize, resulting in further pressure on prices during the quarter. The polystyrene GPPS FD Hamburg price settled at USD 1758/MT by the end of September, reflecting a difficult pricing environment throughout Q3 2024. This final price underscores the sustained pricing challenges faced by the market during this period.
MEA
In Q3 2024, the MEA region saw a period of relative stability in Polystyrene pricing, reflecting a balanced market environment. This stability was driven by well-aligned supply and demand dynamics, where consistent supply chains, steady production rates, and resilient demand from sectors such as packaging and construction played crucial roles. The market maintained a steady trajectory with minimal disruptions, leading to price levels that remained largely unchanged through the quarter. Within Saudi Arabia, prices saw only slight variations, reflecting the region's overall trend. The average prices in Q3 2024 exhibited a minor increase of approximately 0.7% compared to the previous quarter. The stability of prices between the first and second halves of the quarter further highlighted this trend, with August showing a brief uptick before levelling out in September. The quarter concluded with the Polystyrene GPPS FOB-Riyadh price at 1553 USD/MT, underscoring the stable pricing environment in the region. Despite minor fluctuations, the quarter was characterized by a stable and balanced market, with prices remaining relatively constant. This environment of minimal price variations indicated a phase of market equilibrium for the MEA region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Polystyrene market encountered a significant price downtrend, influenced by several critical factors. The quarter was marked by a persistent oversupply situation, driven by high inventory levels and robust production rates that exceeded market demand. Weak demand from key downstream industries such as packaging and construction further exacerbated the price decline. Additionally, the steady decrease in feedstock styrene prices, alongside lower upstream crude oil costs, contributed to the reduction in Polystyrene production expenses, which translated into lower market prices.
Focusing on the USA, where price fluctuations were most pronounced, the country experienced substantial declines in Polystyrene prices. Seasonality played a role, with traditionally slower industrial activities during this period leading to reduced consumption levels. The overall trend was characterized by a bearish market sentiment, with suppliers offering discounts to clear excess stock. The correlation between elevated inventory levels and reduced demand was evident, driving a 2.5% price reduction compared to the previous quarter. From the same quarter last year, the price change was stagnant at 0%, illustrating a consistent downward pressure despite market adjustments.
Comparing the first and second halves of the quarter, prices dipped by 3.3%, reflecting the market's struggle to absorb excess supply. By the end of Q2 2024, Polystyrene GPPS was trading at USD 1,775/MT FAS Houston, underscoring a negative pricing environment. This quarter's dynamics indicate a predominantly negative sentiment, driven by supply-demand imbalances and external cost factors impacting the Polystyrene market.
APAC
The second quarter of 2024 has been marked by a notable increase in the pricing of Polystyrene across the APAC region, driven by a confluence of factors. Foremost among these are heightened costs of feedstock styrene and upstream crude oil, which have significantly augmented production expenses. Additionally, increased demand from key downstream sectors such as packaging, electronics, and automotive has exerted upward pressure on prices. Supply chain disruptions, logistical challenges, and geopolitical tensions have further strained the market, contributing to price escalations. The resurgence in manufacturing activities and favourable economic conditions have also played pivotal roles in sustaining the bullish trend in Polystyrene prices. Focusing on South Korea, the country has experienced the most pronounced price changes within the region, reflecting an overall positive pricing environment. The quarter observed a remarkable 10% increase from the previous quarter, driven by steady demand from robust sectors and consistent supply constraints. Compared to the same quarter last year, prices surged notably, illustrating a strong upward trajectory. The first half of the quarter saw prices gradually climb, followed by a 2% increase in the second half, underlining persistent demand and production cost pressures. As of the end of the quarter, the price of General Purpose Polystyrene (GPPS) on an FOB Busan basis stood at USD 1,380 per metric ton. This steady increase highlights the dynamic interplay of supply-demand imbalances, raw material cost volatility, and seasonal market fluctuations, collectively fostering a bullish sentiment in the Polystyrene market in South Korea and the broader APAC region.
Europe
In Q2 2024, the European Polystyrene market exhibited a pronounced decline in prices due to various influential factors. Market dynamics revealed an oversupply in conjunction with reduced industrial demand from key sectors such as packaging and construction. Stable upstream ethylene prices further contributed to the downward pressure on Polystyrene pricing, preventing sharp cost escalations for manufacturers. Economic uncertainties and moderate consumption rates also played pivotal roles in the observed price reductions. Germany, in particular, experienced the most significant price changes. A combination of high inventory levels and improved supply chain logistics ensured consistent supply, further exacerbating the price decline. Seasonal adjustments and cautious market sentiments led to a stabilization in demand, which failed to offset the abundant supply. Overall, this quarter saw significant reduction in Polystyrene prices compared to Q2 2023, and a 10.3% decrease from the previous quarter in 2024, reflecting a consistent downtrend. The price comparison between the two halves of the quarter revealed a decline of 2.3%, underscoring the persistently bearish market conditions. The quarter concluded with Polystyrene HIPS prices in Hamburg, Germany, at USD 2010/MT. The pricing environment throughout Q2 2024 has been predominantly negative, driven by substantial supply surpluses and tepid demand, marking a challenging period for producers and suppliers within the region.
MEA
In Q2 2024, the Middle East and Africa (MEA) region experienced a downward trend in Polystyrene pricing, predominantly driven by multiple market dynamics. The quarter has been marked by a confluence of factors that collectively exerted downward pressure on prices. An oversupply of polystyrene due to increased production capacities and strategic stockpiling from previous quarters led to aggressive pricing strategies by suppliers aiming to clear inventories. Additionally, softened demand from key sectors such as packaging and construction, coupled with heightened competition among manufacturers, further amplified the price decline. Moreover, fluctuations in the cost of feedstock styrene and overall stabilization in crude oil prices contributed to the reduced production costs, which were subsequently reflected in the market prices. Focusing on Saudi Arabia, the price fluctuations were notably pronounced. Seasonal trends indicated a deceleration in demand post-winter, aligning with the broader regional supply-demand imbalance. Comparing the previous quarter in 2024, a 4% reduction was observed, underscoring the continued downward pricing momentum. Specifically, the first half of Q2 witnessed a more significant decline compared to the latter half, with a recorded price change of -2%. Despite the overall negative sentiment, the quarter ended with the price of Polystyrene GPPS at USD 1,550 per metric ton FOB Riyadh. The pricing environment in Saudi Arabia reflected a predominantly negative trend, driven by market oversupply, moderated demand, and strategic pricing adjustments by suppliers in response to economic conditions and sectoral demand shifts. This analysis consolidates the Q2 2024 period as one of declining prices, influenced heavily by both macroeconomic factors and regional market dynamics.
For the Quarter Ending March 2024
North America
The North American polystyrene market in Q1 2024 demonstrated a dynamic response to evolving market conditions. Starting the year on a stable note, prices in the US remained consistent with the end of the previous year, suggesting a period of consolidation.
The cautious stance in procurement persisted due to a seasonal lull in demand from key sectors such as packaging and construction insulation. However, the market began to shift with a gradual price increase in late January, influenced by global supply chain disruptions, especially those in the Red Sea, and hikes in feedstock costs. By March, the market had seen some fluctuation, with prices initially continuing their upward trend, before experiencing a slight correction, as the market dynamics reached equilibrium with the fulfilment of accumulated orders.
The month closed with a modest rebound to USD 1840/MT, reflective of the ongoing adjustments to base material costs and moderate downstream demand. This period highlighted the market's sensitivity to external factors and the critical role of supply chain stability in pricing.
APAC
The Asia-Pacific Polystyrene market saw a fluctuating first quarter in 2024. The year began with a calm, as prices in China held steady due to a phase of consolidation and cautious procurement strategies from buyers. Despite a marginal increase in raw material costs, prices for polystyrene GPPS remained unchanged, hovering around the same figures as the previous December. However, by mid-January, prices saw a slight dip influenced by weak demand from the polymer industry. This bearish trend was short-lived, as prices stabilized once again thanks to a needs-based buying pattern that prevented further declines. Through February, the Chinese polystyrene market's stability persisted even as producers scaled back production amidst weak post-holiday demand. As March approached, the market witnessed a significant boost, with prices climbing by 3.85% due to increased demand from the electronics sector and limited upstream production. The quarter concluded with polystyrene prices at USD 1360 per MT, demonstrating a resilient yet dynamic market in the face of fluctuating supply and demand conditions.
Europe
The European Polystyrene market experienced a notable uptick in Q1 2024, concluding with a significant price increase in March. The quarter started with a prolonged period of price stability in Germany as market players adopted a cautious approach, matching the closing figures of December. This stability was a result of strategic buying and consolidation, with the German market showing resilience despite a subdued demand in downstream sectors like packaging and construction. However, as the quarter progressed, the situation evolved. February witnessed a gradual bullish trend due to supply chain disruptions, particularly those affecting the Red Sea routes, which squeezed the supply and exerted upward pressure on prices. By March, the price for polystyrene GPPS grade on an FD-Hamburg basis in Germany had climbed to USD 2010/MT, a surge attributed to persistent logistical challenges, rising production costs, and robust demand from downstream sectors. The steady climb in prices through the quarter reflects the market's response to external pressures and underlying demand strengths.
MEA
The Middle East and Africa Polystyrene market displayed considerable volatility in the first quarter of 2024. The period commenced with market stability; however, the tranquillity was disrupted by geopolitical tensions in the Red Sea. These tensions led to apprehensions about sustained supplies, as the region plays a pivotal role in connecting Asian and European trade routes. January saw subdued market activity in Saudi Arabia, compounded by a slump in demand, which in turn, depressed prices by 4.5%. However, the market took a positive turn in February with a price rebound of 3.3%, spurred by heightened export orders from Northern Europe and Turkey, striving to circumvent elevated freight costs due to the Red Sea conflict. Come March, the Polystyrene market experienced a sharp 6.4% price increase to USD 1500/MT, driven by persistent logistical delays, rising production costs, and robust domestic demand from the expanding polystyrene sector. Despite supply chain challenges, the market showed resilience, perhaps indicating a gradual adaptation to the ongoing global shipping and geopolitical uncertainties.
South America
The South American polystyrene market faced a quarter of fluctuations through the first months of 2024, reflecting a sway of supply and demand within the complex global landscape. Brazil, as a focal point, kicked off the year with polystyrene prices at USD 1530/MT, experiencing a marginal 1.7% decline in January, a figure that analysts attributed to the post-holiday lull in industrial activities. However, this downturn was short-lived as February witnessed a 1.6% rebound in prices, indicative of the market's recovery momentum and a pickup in demand across various sectors. March saw a more pronounced 2.3% surge in polystyrene prices, settling at USD 1590/MT, amidst persistent supply chain challenges that were exacerbated by geopolitical tensions affecting the Red Sea trade routes. These disruptions led to heightened import prices and extended delivery times that strained the market's agility. The construction and packaging sectors, major consumers of polystyrene, contributed significantly to the internal market's robustness, underpinning the steady demand. The quarter concluded with the South American polystyrene market demonstrating its capacity to withstand global upheavals, maintaining a steady course amid the ebbs and flows of international trade and logistics.
For the Quarter Ending December 2023
North America
The North American Polystyrene market in Q4 2023 witnessed a bearish trend. The market observed a surplus of products flowing in from manufacturing units, leading to a high supply. Limited market uptake and declining regional demand contributed to a decline in Styrene prices.
The spot market observed a slower pace despite the lower spot price offers, resulting in low petitions from firms. The United States witnessed a decline in prices by 6.5% when compared from Nov 2023 to Dec 2023, primarily driven by subdued demand from overseas markets like packaging and household manufacturing units.
The country's Polystyrene market remained feeble, with prices remaining at USD 1692/MT during Dec 2023. Production cuts in the region contributed to the decline in inventory levels in the regional market, while rising energy prices supported the inclining trend. No plant shutdowns were reported during the quarter. Overall, the North American Polystyrene market remained weak, driven by high supply, low demand, and limited market uptake.
APAC
The Polystyrene market in APAC region was under pressure due to a surplus of product supplies and weak demand during the Q4 of 2023. The market contended with subdued trading activities, and sellers were under pressure to clear stocks with slight concessions. In South Korea, Polystyrene GPPS FOB Busan prices saw a bearish trend, with a 3% decline in Q4 2023 from the previous quarter. The significant factors that impacted the market were the surplus of material availability, steady yet moderate demand, and ongoing weakness in feedstock Styrene fundamentals, coupled with lower energy prices, affecting the overall production cost. The market was also affected by a decline in demand from construction, consumer goods manufacturing, and packaging industries. Despite consistent demand from the automotive and electronics sectors, the market outlook was cautious due to ample material availability and oversupply. There were no plant shutdowns reported during this quarter. The price of Polystyrene GPPS FOB Busan in South Korea during Dec 2023 was USD 1246/MT FOB Busan.
Europe
The Polystyrene market in Europe experienced subdued demand from downstream industries in Nov 2023 and Dec 2023, resulting in reduced material consumption and declining prices. In Q4 2023, market situation remained stable, with high to moderate supply and low to moderate demand. The surplus of product supplies combined with weak product demand compelled producers to lower product prices. The German Polystyrene market experienced a decline in prices due to uncertainties in demand from downstream packaging and consumer goods manufacturing industries. Belgium witnessed the most significant changes in prices, with a 3.9% reduction in Polystyrene GPPS FD-Antwerp prices in December 2023. The market supply remained stable, but limited market uptake and declining regional demand led to a decline in prices. The Euro to United States Dollar depreciation also impacted the market dynamics. The price percentage comparison of the first and second half of the quarter in Belgium was -1%. The latest price of Polystyrene GPPS FD Antwerp in Belgium for Q4 2023 was USD 1678/MT. The ongoing weakness in feedstock Styrene fundamentals, combined with lower energy prices impacting the overall production cost, led suppliers to introduce discounts to stimulate market participation.
MEA
The Polystyrene market in the Middle East and Africa region experienced a positive trend during the fourth quarter of 2023. Several key factors influenced the market and prices during this period. Firstly, strong demand from vital downstream sectors such as Automotive, Electronics, and Packaging industries played a significant role in driving up prices. Additionally, the scarcity of available stock and supply challenges further contributed to the price surge. In terms of country-specific analysis, Saudi Arabia stood out with the maximum price changes in the region. The country witnessed a notable upward trend in prices, primarily driven by the surge in feedstock Styrene prices. This increase in upstream costs had a direct impact on the production cost of Polystyrene, leading to the observed price hike. Furthermore, the market experienced a steady increase in demand from the downstream industries of packaging and insulation, which further inflated market fundamentals. The rise in energy prices also supported this upward trend. However, the market faced challenges in fulfilling orders promptly due to insufficient inventories and disruptions in the supply chain. Overall, the Middle East market showcased a bullish market sentiment during the fourth quarter of 2023, with Saudi Arabia leading the price surge. The quarter ending price of Polystyrene GPPS FOB-Riyadh in Saudi Arabia was USD 1400/MT Spot Riyadh.
For the Quarter Ending September 2023
North America
In the US, the Polystyrene market witnessed a slight declining trend throughout the third quarter of 2023. The beginning of Q3 marked a bearish trend in the Polystyrene sector, driven primarily by subdued demand from downstream industries, particularly derivatives and packaging sectors. Additionally, a consistent influx of material from manufacturing units led to an oversupply situation, further dampening market conditions. However, in August, the price of polystyrene remained stable, with feedstock styrene and crude oil costs also remaining stable, supporting the Polystyrene market. The stability of the US market was further reinforced by a meticulous focus on supply chain management and domestic production augmentation. Furthermore, an apparent decline in US exports to the Asian region, caused by drought-related issues in Panama affecting Panama Canal traffic, led to sufficient inventory levels in the domestic market. This prompted suppliers to maintain stable prices instead of further increments. In September, a slight increment in the Polystyrene market occurred. This price surge resulted from a noticeable mismatch between supply and demand dynamics. Heightened requirements from downstream industries like Expanded Polystyrene (EPS) and the food and beverage packaging sector significantly contributed to this imbalance, leading to increased trade volumes to meet the growing demand.
APAC
In the Asia-Pacific region, the Polystyrene GPPS FOB Qingdao (China) market witnessed an increase of approximately 0.5% during the third quarter of 2023. Initially, the market had experienced a decline due to reduced demand, particularly from prominent sectors like packaging and its derivatives. However, as the second month of Q3 unfolded, the Chinese Polystyrene market had noticeably showcased an increment in its price trend in both August and September. This increase had been brought on by increased feedstock Styrene and crude oil prices. Furthermore, demand from downstream industries, particularly Packaging and Construction, had displayed a tempered growth rate, while the heightened requirement from the Consumer goods manufactures had aided in pushing the market upward. Additionally, an apparent decline in US exports to the Asian region, caused by drought-stricken Panama and low water levels that prompted the Central American country to reduce the number of vessels passing through the critically important Panama Canal, had resulted in a surge in production rates in the Chinese region. This had increased the overall demand for base material and raised the product's cost accordingly.
Europe
Throughout the entire third quarter of 2023, the European Polystyrene market experienced a decline of approximately 5%. At the beginning of Q3, the market adopted a bearish trend characterized by limited trading fundamentals. Demand from downstream sectors, including derivatives and construction, remained moderate, but a continuous influx of material into the market made buyers cautious due to high polystyrene levels. In August, the Polystyrene sector continued its bearish trend, mainly due to subdued demand from downstream industries, particularly in derivatives and packaging sectors. Furthermore, a consistent influx of material from the Turkish market led to an oversupply situation, further dampening market conditions. The European market also felt the effects of a weakened Purchasing Managers' Index (PMI), which added to the challenges impacting market dynamics. However, in September, the Polystyrene market experienced a significant upswing in prices. This increase was the result of a shift in demand, with key sectors such as the Automotive industry and packaging showing substantial interest. Additionally, the downstream construction and building sector aimed to build up their stock at lower price levels for future requirements, leading to active spot trading within the domestic market and keeping market participants engaged and motivated. Furthermore, the surge in feedstock Styrene costs played a pivotal role in elevating the overall production costs of the product, contributing to the observed price hike.
MEA
In Saudi Arabia, the Polystyrene market exhibited a mixed trend during the third quarter of 2023. Market sentiments were influenced by various factors that affected both supply and demand dynamics. At the start of the quarter, the polystyrene market experienced a downward price trend. Analysts primarily attributed this decline to a lackluster demand from sectors such as Insulation and packaging industries. However, as the second month of Q3 unfolded, the polystyrene market began to show an upward trend. This increase in material prices occurred due to a shift in demand, with significant sectors like the Automotive industry and the downstream construction and building sector looking to build up their stock at lower price levels for future requirements. This led to healthy spot trading activity both domestically and in overseas markets, keeping recyclers motivated. Furthermore, the surge in the cost of feedstock styrene played a significant role in raising the overall production cost of the product. Moreover, the Polystyrene market experienced a notable upward trend in the month of September, primarily driven by the surge in feedstock Styrene prices, which was fueled by the rise in Naphtha costs. This increase in the cost of upstream materials impacted the overall production cost and had an effect on the derivative market fundamentals. Additionally, robust market fundamentals from overseas downstream industries, particularly in the Automotive and packaging sectors, played a significant role in boosting the market value of the product.
For the Quarter Ending June 2023
North America
In the US, the Polystyrene market has experienced a noticeable declining trend within the entire second quarter of 2023. At the beginning of Q2 Polystyrene market showcased a balanced trend in the wake of moderated demand and supply conditions. However, in the month of May rise in the consumption rate of material from the major construction and packaging industries simultaneously led to a surge in procurement and export of the commodity. However, In May, the debt crisis that happened due to the simultaneous downfall of major banks in the USA caused a drastic effect on the US marketing condition and provoked the buyers to hold back from placing large orders. Overall, the effect of these activities was observed in the month of June with declining market fundamentals from the major associated downstream industries. Additionally, the declining styrene prices had a persistent influence on market participants leading them to maintain weaker prices in order to ensure affordability. Overall, the Polystyrene GPPS FAS Houston (USA) showcased a decrement of (1.5%) during the entire Q2 time.
APAC
In the Asia-Pacific region, the Polystyrene GPPS FOB Qingdao (China) market has witnessed a notable decline of approximately (3.2%) during the second quarter of 2023. The Market's initial descent was primarily triggered by a decrease in demand from prominent sectors such as packaging and its derivatives industries. As the second month of Q2 unfolded, the EPS market condition remained stable in a state of in the wake of moderated supply-demand conditions ensuring a well-balanced region. Furthermore, in the month of June, an increase in the inventory level in the domestic ports and poor demand from the associated industries consequently opened the doors for the suppliers to offer lower bids for the commodity and force sellers to provide discounts on the material. As continuously declining feedstock styrene costs are manipulated, the ventures do not increase material prices furthermore to keep the prices economical. Buyers refrained from placing large orders, and with it, moderate trading activities were observed during the entire Q2.
Europe
The polystyrene market continuously follows a declining price trajectory during the entire second quarter of 2023. Falling trading activities in the European Market have created a generally skeptical market. The extended weakness in the buyer appetite in the domestic Market, with sluggish end-user consumption in key industries such as the packaging and construction sector, prompted market participants to keep the prices on the weaker side to keep the prices economical. Adequate supplies of products in the domestic ports kept the Market oversupplied, and due to the plentiful availability of the product in the region, low demand amid a Slump in purchasing activities of polystyrene was observed as the demand recovery fell short of expectations. Overall consumption showed a deep contraction and failed to regain. Additionally, the Market remained hampered by slipping demand coupled with fluctuating feedstock Styrene prices and also with a continuous decline in energy prices. Furthermore, economic uncertainty and recession fear in the European region continued to govern market sentiments, with it Polystyrene GPPS FD Rotterdam (Netherlands) showcasing a decrement of approximately (8%) during the entire Q2 of 2023.
MEA
In Saudi Arabia, the Polystyrene market experienced a mixed trend during the second quarter of 2023. The market sentiments fluctuated based on various factors impacting demand and supply dynamics. At the beginning of the quarter, the polystyrene market witnessed a surge in price trends. This growth is attributed to the surge in demand for materials from packaging and its derivative industries. Additionally, favorable market conditions and stable economic growth played a role in the upward trend of the polystyrene market in April. During May, the polystyrene market started showing a declining trend during this period, and this was due to weak cost support from the base material styrene and a consistent inflow of products across the region. However, in June, the polystyrene market again experienced a drop in its prices as the attitude towards the demand remained dubious, on the back, disrupted market sentiments from the downstream packaging and construction industry. Enterprises encountered difficulties in their commodity orders added to having sufficient stocks, with a decline in trading activities added to weak market sentiment for this commodity. Overall, Polystyrene GPPS FOB-Riyadh (Saudi Arabia) showcased a decrement of approximately (7.2%) during the entire Q2 OF 2023.
For the Quarter Ending March 2023
North America
The Polystyrene market had conflicting sentiments in the first quarter of 2023 as a result of fluctuating upstream (crude oil) prices in the regional market. As the demand-supply imbalance widened and production costs rose, the price of Polystyrene soared towards the end of the quarter. US laborers went on strike in protest for better pay and working conditions. The domestic Polystyrene market's manufacturing rate was influenced at the conclusion of the previous quarter by lowering temperatures and rainfall. The final costs of Polystyrene in the US market decreased proportionally as downstream purchasing activity decreased.
Asia-Pacific
Polystyrene prices in the Asia-Pacific market have been steadily declining due to a slow production rate. The first quarter saw a dip due to declining upstream (crude oil) prices on the worldwide market; consequently, suppliers and end users stocked up on the product. Additionally, the product's downstream packaging sector demand in February was weak, which had a proportionate effect on the ultimate prices. Additionally, there were additional issues at play in the second half of the quarter, including supply chain delays and trucker strikes. The Chinese market was quiet for the entirety of the quarter due to low demand for the product throughout the spring holidays. Prices in the Asian market were impacted by fewer supplier inquiries.
Europe
The Polystyrene market displayed unfavorable market sentiments during the first quarter of 2023 as a result of low pricing for the material in the local market. Along with fluctuating crude oil prices on the domestic market, the product's demand fell. Although the inflation rate stabilized, the overall polystyrene market continued to trend downward. In spite of local seasonal fluctuations, the demand for the product decreased due to rising energy costs and a low employment rate. Slow demand in the polystyrene and solvent sectors influenced the ultimate costs of the material in the European market.
For the Quarter Ending December 2022
North America
Polystyrene prices varied in the fourth quarter of 2022 due to shifting crude and feedstock Styrene prices. While the first and last months showed an increase in prices, the second month of the quarter experienced a decline in prices. Additionally, December's low temperatures and festive holidays reduced the amount of Polystyrene produced in the US. The downstream market's purchasing activity decreased proportionately, which had an effect on Polystyrene's final prices. There was downward pressure in the price realization of Polystyrene in the US markets due to the low comparable freight rates between the US and Asian markets. Polystyrene GPPS FAS Houston (USA) was averaged at USD 2213/MT.
APAC
On account of falling feedstock Styrene prices, the Asia Pacific market saw a steady reduction in Polystyrene prices. The fourth quarter saw relatively low prices for the commodity due to strong production rates and weak demand from the downstream industries. Due to COVID restrictions and weak demand in the domestic Chinese market, the Chinese market remained quiet in Q4. Additionally, Q4 saw a string of declining upstream prices, which enabled companies to step up production and later stockpile, resulting in adequate supplies in the region. Polystyrene GPPS FOB Busan (South Korea) prices were assessed at USD 1553/MT.
Europe
The market for Polystyrene displayed negative market sentiments throughout the last quarter of 2022 as a result of shifting upstream crude oil prices in the European market. In the midst of fluctuations in the global crude oil value, Polystyrene demand remained low. However, there was some stabilization in the inflation rates in the European region, and the price of Polystyrene continued to decline during the quarter. Downstream derivatives such as Expanded Polystyrene, SBR, and SAN likewise followed a similar pricing trajectory in line with the low prices of Polystyrene. Furthermore, traders lowered their offers to maintain a balance between supply and demand. Polystyrene GPPS FD Rotterdam (Netherlands) was assessed at USD 1670/MT.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the prices of Polystyrene followed an upward trajectory in the US market. One of the significant manufacturers of Polystyrene, American Styrenics, announced a spike in Polystyrene prices, significantly impacting the final prices in the region. As per the producers, the heat waves moved the production cost. Electricity demand increased in industrial and residential areas, leading to electricity prices. Furthermore, the market sentiments for Polystyrene in the US market continued to be driven by demand from the packaging industry and thermoplastic insulated containers. Due to declining feedstock prices, the market dynamics for US polystyrene continued to trend lower throughout this August week. As domestic crude oil costs continued to decline, so did the expense of making Polystyrene. High commodity prices compel end consumers to prioritize their wants, resulting in decreased demand for products produced of Polystyrene in the US market.
APAC
The prices of Polystyrene remained diminishing throughout the third quarter of 2022 in the APAC region. The key factor governing the market sentiments of Polystyrene is the diminishing prices of crude oil in the international market. Feedstock Styrene prices kept declining in the Chinese market, proportionally impacting the market prices of Polystyrene. In the first week of August, the prices of Polystyrene observed a decline of 2.1% in the Chinese market, settling the prices at USD 1549 per MT, GPPS FOB Qingdao, and USD 1512 per MT. The Chinese market showcased a low product manufacturing rate of Polystyrene throughout the week as the demand for the product from downstream, food packaging, and electronic appliances remained weak. Additionally, the market in India continues to experience a decline in the need for packaging and insulation for electrical appliances, which directly impacts Polystyrene pricing.
Europe
Polystyrene prices in the European market keep decreasing this quarter due to overall commodity price inflation. High production costs took the lead in determining Polystyrene pricing trends. The price of feedstock Styrene in the German market stayed on the lower edge throughout the week, according to the leading manufacturers, affecting the cost of Polystyrene. The new PS rates from Ineos Styrolution included a €210/tonne cut, which led to lower Polystyrene costs in Germany. Due to weaker demand and higher utility costs, producers reduced their output rates. On August 26, the pricing was set at USD per 2338 MT, GPPS FD Hamburg, and USD 2220 per MT, HIPS FD Hamburg.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, the prices of Polystyrene followed the upward trajectory in the North American region by approximately 4%. The prices were assembled at USD 2354 per MT, GPPS FAS Houston, and USD 2930 per MT, HIPS FAS Houston USA, towards the quarter end. Major manufacturers such as INEOS Styrolution and Kraton Corporation increased the prices of Polystyrene in the regional market. Strong demand for food packaging and insulated appliances became the driving force for the inclined prices. Furthermore, the upstream styrene prices remained on the higher edge on the back of crude oil prices in the North American market. Rising temperatures elevated the demand, consequently increasing the production cost. The significant players of supply shortage, frenzy supply, and surging demand impacted the prices of Polystyrene in the North American market.
Asia-Pacific
In the second quarter, approximately a 3% price hike was witnessed in the prices of Polystyrene in the Asia-Pacific market. Asian countries suffered from restricted transportation elevating the market prices of Polystyrene. A major manufacturer of Polystyrene, China went under strict lockdown as COVID infections reoccurred in the country, halting the production rate in the regional market. With the increase in crude oil prices, styrene prices also elevated throughout the quarter. The demand from packaging and disposable cutlery industries in countries such as India and South Korea governed the elevated market prices of Polystyrene in the Asia-Pacific market. The prices observed were at USD 1656 per MT, GPPS FOB Qingdao China towards the quarter end.
Europe
In the European market, the prices of Polystyrene got assembled at USD 2895 per MT, GPPS FD Hamburg, Germany, in June month. European countries suffered from commodity inflation throughout the quarter leading to price escalation in Europe. Feedstock and Styrene prices remained high on the back of increasing crude oil prices. Furthermore, rough feed transportation, high electricity costs, and labor shortages hinder the operational rate of Polystyrene in Europe. Sanctions applied by the regional counties also led to tight supply impacting the market prices of Polystyrene. Burgeoning demand from packaging, electronic appliances, and automobiles kept driving the market sentiments of Polystyrene in the European market.
For the Quarter Ending March 2022
North America
The prices of Polystyrene in the North American market were driven by the feedstock prices showing oscillation in first quarter of 2022. The prices of Polystyrene at the quarter end surged to USD 2262/ton, GPPS FAS Houston, USA. Hike in the feedstock prices were accompanied by the soaring crude oil prices as an ill effect of the growing political tension between Russia and Ukraine. Furthermore, the demand from packaging industries have increased with rapid urbanization demand for electronic appliances, automobile enterprises have elevated the prices in the North American market. Supply chain disruption impacted the production rate, affecting the prices of Polystyrene. When compared with Q4 of 2021, Polystyrene prices have shown slight difference of 0.4% in the North American market in the first quarter of 2022.
Asia Pacific
In Q1 of 2022, the Asia Pacific market witnessed growth of 9.1% as opposed to Q4 of 2021. The surge in the prices occurred due to surging feedstock Styrene prices and high crude oil prices. In China, the prices observed ranged between USD1440/ton GPPS FOB Qingdao in the month of January and USD1530/ton GPPS FOB Qingdao towards the quarter ending March 2022. Prices of Polystyrene were accelerated because of limited supply and surging domestic demand. Furthermore, after the implementation of lockdown in China, manufacturers had to halt the production temporarily, leading to tight supply in the Asian market. Demand from downstream sectors such as insulation and packaging remained stable, impacting Polystyrene market in the region.
Europe
The prices of Polystyrene in Q1 of 2022 observed an exponential growth of 13% in contrast with the Q4 of 2021. In January, Polystyrene prices were observed at USD2235/ton GPPS FD Hamburg and USD2406/ton GPPS FD Hamburg, Germany. Price escalation was observed as crude oil prices spiked up after the tension between Russia and Ukraine which elevated the production cost among the downstream enterprises. Manufacturers faced uncertainty in feedstock supply which hampered the production of Polystyrene in European market. Major producers of Polystyrene faced logistics hurdles, and port congestion for the overseas suppliers which surged the prices.
For the Quarter Ending December 2021
North America
In Q4, the prices of Polystyrene observed to be slipped compared with Q2 and Q1. The prices hit their lowest in the last week of December where prices dropped to $2140/ton GPPS FAS Houston. Polystyrene exports declined in the opportunistic arbitrages with China and Europe amid US domestic supply lengthdue to reduced derivative styrene operating rate. Another factor that come into play is the dominance of Taiwan in the feedstock Styrene export in the globe. However, the strong freight charges and demand deterioration fell the US Polystyrene prices in the market. Demand from downstream Polystyrene has soften in this quarter as inconsistency in volume intakes has been observed from key Polystyrene manufacturers.
Asia Pacific
In Q4, the Asia Pacific market witnessed exponential growth in the prices due to surge in feedstock Styrene and Benzene. In India, the prices were observed to be maxed on 5-Nov and surged to $2102/ton (HIPS) IM Grade Ex-Mumbai. The prices rose because of limited supply and healthy trading market. Upstream Ethylene and Benzene market was also observed to be retrieving due to increasing crude oil price due to consumer demand for heating and other applications in winter. In China, the prices in the last week of December surged to $1395/ton FOB Qingdao amid sufficient supply and strong demand. The exports to South Korea and Vietnam from China were operated moderately due to increasing demand of product in that region. Downstream insulation and packaging industries worked stably with increase in sales revenue.
Europe
In Q4, the prices of Polystyrene observed to be stable on the upper end. December prices of Polystyrene in Germany observed to be on their peak compared to other two months. (HIPS) FD Hamburg prices in December were $2270/ton. The prices in December increased by 9.71% and 4.36% compared with October and November respectively. Inadequate stock of Styrene and its feedstock the European market, made issue in the locale to meet the necessities in their domestic as well as in international market. Deficiency of raw material Benzene and Ethylene hampered the Styrene market. Saudi Arabia, which is the major exporter of Styrene to the International market, had also revised its price due to supply demand gap for European market.
For the Quarter Ending September 2021
North America
In North America, the Polystyrene market remained firm during Q3 backed by the hike in the prices of feedstock Styrene and Benzene. However, increment in the values of Polystyrene was marginal as the demand for other versatile products outpaced the demand for Polystyrene in the regional market. In August, many manufacturers in the Gulf Coast of USA were compelled to shut their production plants as a repercussion of the Ida hurricane. For instance, AmSty imposed a turnaround at its Styrene production plant having capacity of 950 KTPA. Ida Hurricane, led to the disruption in the production rates and supply chains that consequently resulted into tight supplies of the product in the US. FAS-Houston Polystyrene HIPS grade prices were assessed at USD 2690 per Tonne in July.
Asia Pacific
In Q3 2021, prices of Polystyrene showcased a steep climb in the Asian market owing to the constraint supply and high demand. Hike in the values of upstream Styrene in the international market also affected Polystyrene Prices in the Asian region. In China, a spike in the PP prices was observed in this timeframe backed by the congestion on several ports of China due to the temporary closure of Ningbo Port in the wake of Covid19 zero-tolerance policy. In India, Polystyrene demand witnessed improvement as there was a rebound in the industrial and commercial activities in this quarter. Moreover, extreme shortage of shipping containers and high freight charges also contributed to the pricing trend of Polypropylene in India. EX-Mumbai HIPS Grade Polystyrene prices were assessed around INR 183330 per Tonne in September showcasing a marginal increment by nearly USD 60 per Tonne since July.
Europe
During the third quarter of 2021, Polystyrene market outlook witnessed a downfall in this quarter backed by the sufficient feedstock supplies in the region. In addition, a drop in the prices of Polystyrene also supported the decline in the costs of SM grade. Moreover, low production rates in the region due to energy crisis also dampened the Polystyrene market in this quarter. FD Hamburg prices declined to USD 1880 per Tonne from USD 2090 per Tonne in the timeframe of July to September.
For the Quarter Ending June 2021
North America
Overall, the North American market observed a steep increment in the Polystyrene pricing trend at the starting of the second quarter, then continued the upward trajectory at a slow pace. Supply conditions improved in Q2 2021, as compared to the previous quarter owing to resumption in production at several operating rates and ample availability of the upstream Styrene. The demand outlook observed a robust growth owing to multiple factors such as strong enquiries from the building and construction sector and constant offtakes from the packaging and consumer goods sector. Due to the upcoming hurricane season in the next quarter, market sentiments to procure large Polystyrene orders were high amidst growing competitiveness among the buyers. As a ripple effect, the FAS Houston pricing discussion of Polystyrene HIPS grade settled at USD 3100 per tonne in June.
Asia Pacific
Polystyrene market outlook in the APAC region showcased mixed sentiments during the second quarter of 2021. In India, the Polystyrene demand outlook remained subdued amidst restricted industrial and commercial activities due to the second COVID wave across the country. As a repercussion, offtakes were curtailed even though several traders were trying to control the pricing trend through regulating supplies. Whereas, in China commission of new upstream Styrene monomer facilities kept the supplies lengthened during the second quarter of 2021. In June, FOB Qingdao Polystyrene prices were assessed around $2390 per tonne. However, some hinderance was witnessed in the consuming sectors as the power outage and rising COVID cases limits the industrial and trading activity in South China’s Guangdong province.
Europe
During the second quarter of 2021, Polystyrene supplies improved compared to the previous quarter owing to ample availability of the upstream Styrene monomer and improved operating rates in the production facilities. Demand outlook remained upbeat throughout the quarter amid buyers actively seeking to replenish inventories to cater to strong industrial rebound. Market players observed seasonal hike in demand from the building and construction sector, however, offtakes were muted from other end consumers.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, the supplies of Polystyrene were tight, as several Styrene monomer plants went for maintenance turnarounds during the H1 of Q1, followed by the production disruptions caused due to extremely freeze weather conditions in the US gulf region resulting in plant outages in mid-February. However, the demand surged as the utilization improved from the downstream automotive sector and construction sector. Demand for Expanded Polystyrene (EPS) from food packaging applications kept the sentiments raised although persistent feedstock tightness raised Polystyrene contractual offers.
Asia-Pacific
The supplies in Asian region improved as compared to last quarter, as major production facilities boosted the efficiency rates, as they returned from the prolonged turnaround period in the region. However, in early February, amid the earthquake in Japan some plants were forced to halt their productions which put constraints in the feedstock styrene supplies. The demand surged as the consumption improved due to the rebound of automotive sector. The inflation in upstream products consequently surged the prices of Polystyrene in the Asian markets. The quarterly average of the General-Purpose PS (GPPS), moulding grade in the Indian market was estimated to be around USD 1789/ton.
Europe
The European PS supplies were tight during the first quarter, as the availability of feedstock remained constrained due to major styrene producing plants in the region declared force majeure in early February. 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 slowly improving automotive sector. The demand for packaging materials however, remained high throughout the quarter.
For the Quarter Ending September 2020
North America
The third quarter proved to be muted for the North American Polystyrene industry. While demand from the medical and packaging sector remained resilient, the demand from larger segments, such as appliances, automotive and construction, are yet to show significant improvement due to high unemployment rates and hovering uncertainty in the economic growth. Polystyrene players maintained their run rates around 70-75% to grapple with the softening margins.
Asia
Asian Polystyrene players have reported healthy margins due to restocking activities by downstream packaging and disposable sectors while some countries prepare themselves for the upcoming festive season. However, some plant turnarounds which are expected in South Korea and Malaysia by the end of the October month may impact the supply chains. While the market still seems susceptible to fluctuations in the upstream Styrene values, Southeast Asian activity head towards improvement as some regional importers increase their run rates.
Europe
The Q3 results of the European Polystyrene remained satisfactory in anticipations that demand from the construction sector would gain focus in the upcoming months as the region bounces back from the COVID led disruptions. Steady demand for PS grades used for food packaging and medical applications will continue to widen the product margins. The quarter ended with AmSty, INEOS Styrolution and Trinseo signing a Joint Development Agreement (JDA) to ensure the circularity of Polystyrene through the first-of-its-kind Polystyrene recycling plant in France to widen the product scope.
