As Production Rates Decline, Polystyrene Prices Appear to be on the Lower End
- 06-Dec-2022 1:53 PM
- Journalist: Shiba Teramoto
In Europe, Polystyrene prices appeared to have reached a bottom since the third quarter of 2022 and continued the downward trend in December 2022. As a result, the price of Polystyrene has dropped to a three-month low of USD 1750/MT on an FD Hamburg basis.
Polystyrene Prices are continuously on a plunge as the domestic demand has slowed, and the market is well supplied. Also, the exports at competitive prices are still coming in at a steady rate. Analysts stated that despite declining demand, suppliers managed to stay on top by reducing production rates. With significant volumes of imported Polystyrene, suppliers have decided to give up some profit even though an increase in raw material Benzene contract pricing was anticipated in December.
One source referred to the price differential as "unsustainably huge" between domestic and imported goods. However, in the last week of November, the indicated Styrene cost based on a 30/70 formula of spot benzene/ethylene declined. Additionally, in its most recent press release from December 2nd, Trinseo, a producer of specialty material solutions, announced a price reduction for all grades of Polystyrene.
Despite the manufacturer's decreased output, sources reported that there is still a plentiful material supply and that spot purchases at significant discounts were possible. According to ChemAnalyst, there has been a persistently high demand for downstream packaging industries and from processors who have used up their stockpiles.
These sources observed signs that prices were bottoming out for November and December, and they predicted flat to slightly lower prices.
According to ChemAnalyst, Polystyrene prices did not change this month; however, if an increase in Benzene prices is noted, then Polystyrene prices may rise again. Further price reductions are anticipated after the fourth quarter as well, considering that the demand for Polystyrene in the global market was declining and that China was beginning to regularly export the material, making it the newest competitor for American suppliers.