In June 2025, Expanded Polystyrene prices in China fell 1.6% weekly due to reduced demand from packaging and automobile sectors, low styrene costs, and cautious buying, with a moderate recovery expected in July
During the first three weeks of June 2025, the Chinese market for expanded polystyrene saw a consistent downward trend, with weekly price drops of 1.6%. Strong downward pressure is shown in this continuous decline, which is brought on by lower purchases from significant industries like the packaging and automotive sectors as well as insufficient support from raw material costs.
The cost of making Expanded Polystyrene was reduced by lower styrene prices, which were associated with a weak benzene market. Nevertheless, the sales were not increased by this cost reduction. Instead, because demand was still low, it resulted in additional price reductions. After restocking in May, the automotive industry, which utilizes expanded polystyrene for packaging and insulation, reduced orders. Slower vehicle sales and reduced production also affected the Expanded Polystyrene purchase volumes. At the same time, the packaging industry remained cautious, placing orders only on need basis due to slow retail activity and uncertainties about the future markets.
Expanded polystyrene manufacturers avoided raising prices and instead concentrated on maintaining market stability in response to the weak demand and declining pricing. In order to prevent excess stock, factories in the nation's key areas had modified their production rates. The disparity between supply and demand widened even as domestic output persisted. Despite the low demand, local producers maintained considerable control over the price of expanded polystyrene because imports were scarce.
This is a significant change from May 2025, when prices in the Expanded Polystyrene market increased steadily. The upward trend in prices was because of renewed buying from the automobile and packaging sectors, along with controlled supply management by producers in the first half of the month. Strong restocking efforts in mid-year markets further supported the positive outlook for the Expanded Polystyrene market during the month.
However, by early June, these short-term demand drivers weakened, causing drastic changes in the market shift. A lack of new purchases, combined with lower raw material styrene costs, pushed the prices down continuously for three weeks. The overall sentiment in the Expanded Polystyrene market remained negative, with almost no support from either supply or demand.
Looking forward, a 1.3% price recovery is expected in July, possibly supported by seasonal growth in packaging and automobile activity, planned factory maintenance, and a potential rise in raw material costs. As of the third week of June 2025, the Expanded Polystyrene market remains under pressure. With weak market conditions and slow activity in major sectors, prices are likely to stay low in the short term unless major changes occur.
