Germany’s Expanded Polystyrene market showed signs of recovery in mid-September 2025, with prices rising by 1.1% in the second week after stabilizing in early September, then holding steady through the third week. This ended the downward trend that had continued through August, bringing some relief to the market.
The movement in Expanded Polystyrene prices has been steady rather than sharp. It began with a 1% fall in early July, followed by four weeks of stability through early August. Mid-August saw a moderate decline, which was followed by sharper drops of about 2.5% in the following weeks. Prices then stabilized in early September, recovered in the second week, and stayed firm through the third week of the month.
Expanded Polystyrene market conditions improved as feedstock styrene costs remained moderate, supported by crude oil and naphtha markets in Europe. With no rise in input costs, producers kept output levels steady. The market stabilized thanks to seasonal increases in demand for packaging and construction as well as increased buyer confidence following the price recovery.
Sustainability-led purchasing kept evolving. Orders for Expanded Polystyrene have increased, and grades with recycled material are increasingly being used in protective packaging and construction insulation. Exports to nearby EU markets and Africa added further stability, while domestic demand from construction and packaging showed gradual improvement.
Demand increased in the construction industry thanks to new insulation projects and increased orders from suppliers of building materials. Due to their affordability and thermal efficiency, expanded polystyrene insulation boards continued to be widely used. A slow transition to bio-based and recycled alternatives was promoted by regulations supporting sustainable construction materials, but customers were drawn back to the market by the price recovery. This improved sentiment contrasted with the 1.5% monthly fall seen in August, as Expanded Polystyrene purchasers responded positively to the mid-September stabilization.
The packaging sector also showed renewed interest in Expanded Polystyrene. The German logistics and e-commerce industry, though under pressure from environmental regulations, recorded higher activity as seasonal demand patterns emerged. High compliance costs, complex sustainability rules, and stricter packaging waste policies continued to weigh on the market, but demand for Expanded Polystyrene in protective packaging and food containers showed signs of recovery, supporting the improved outlook.
Looking ahead, ChemAnalyst Expanded Polystyrene price forecasts indicate a 1.1% rise in October 2025, supported by seasonal restocking in construction and a possible tightening in styrene supply due to planned cracker maintenance in Europe. This is expected to be followed by declines of about 3.5% during November and December, as slower buying after restocking, reduced construction activity, and year-end stock clearances put pressure on the market.
