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Expanded Polystyrene Market in Germany Experiences Volatility in August 2024
Expanded Polystyrene Market in Germany Experiences Volatility in August 2024

Expanded Polystyrene Market in Germany Experiences Volatility in August 2024

  • 09-Sep-2024 10:37 AM
  • Journalist: Bob Duffler

In August 2024, the Expanded Polystyrene (EPS) market in Germany experienced significant volatility, reflecting both global economic conditions and regional supply-demand dynamics. The market faced downward pressure in August due to reduced demand and average performance in key sectors.

The monthly price of Expanded Polystyrene on FD basis in Hamburg dropped significantly, reaching USD 2,079 per ton in August, which marked a sharp 4.3% decline from the previous month of July. In July, prices had closed at USD 2,173 per ton, highlighting a deteriorating trend. The weekly price movement further emphasized this downtrend, with prices falling to USD 2,065 per ton by mid-August, a 3.28% decrease compared to the start of the month.

This steep decline in Expanded Polystyrene prices was primarily driven by reducing demand from key industries such as construction and packaging. The construction sector, a major consumer of Expanded Polystyrene, was particularly affected by ongoing economic uncertainties, leading to a drop in new orders and a hesitancy to invest in new projects. Additionally, the broader manufacturing sector in Germany showed signs of contraction, as observed from the manufacturing PMI, which fell significantly in August, the lowest level in five months.

On the supply side, Expanded Polystyrene manufacturers faced challenges due to rising input costs and logistical constraints. Even though demand was declining, production costs remained elevated due to higher transportation costs and fluctuations in the price of raw materials. Manufacturers also reported difficulties in negotiating favourable terms with suppliers, further adding to their operational pressures.

Despite the challenges in August, there are signs of potential stabilization in the Expanded Polystyrene market in the coming months. Prices are expected to rise slightly in September, with forecasts predicting a 2.2% increase. This recovery is likely to be driven by a modest rebound in construction activities, as well as restocking efforts by buyers who delayed purchases during the market downturn. By October, Expanded Polystyrene prices are projected to increase further. However, market conditions are expected to soften again in November, with prices forecasted to decline due to seasonal slowdowns and ongoing economic uncertainties.

In conclusion, the Expanded Polystyrene market in Germany faced considerable headwinds in August 2024, characterized by declining prices and diminished demand. Nevertheless, the outlook for the coming months suggests that the market may see some recovery, albeit with continued risks. Stakeholders in the Expanded Polystyrene market should remain vigilant and prepared for further fluctuations as both domestic and global economic factors continue to influence market trends.

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