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.
