Germany’s Polystyrene market faced challenges in October 2025. Prices continued to decline, amid moderate feedstock costs and weak demand from electronics and packaging sectors. Expectations are for prices to soften further through year-end, driven by reduced demand and the holiday season.
This was not a sudden shift. The Polystyrene market had already seen twelve weeks of sluggish activity, and October extended that trend. Both General-Purpose (GPPS) and High-Impact (HIPS) grades felt downward pressure—feedstock availability was good, but downstream buyers remained cautious.
Mid-October highlighted the situation. HIPS grade prices fell by 2.44% from the previous week. Polystyrene producers had ample raw materials, thanks to consistent styrene monomer supply and rising inventories. However, customers, especially in packaging, appliances, and insulation, were hesitant to buy. This led to full warehouses and further Polystyrene price declines.
By late October, Polystyrene market was relatively stabilized. GPPS grade prices held steady, even though overall sentiment stayed negative. Production continued, with manufacturers using advanced polymerization technology to control costs. Chemical recycling also picked up, particularly at the new Krefeld plant, which increased output of food-grade recycled Polystyrene—supporting both supply security and the circular economy.
Not all downstream demand was bleak. Packaging performed reasonably well, supported by e-commerce and steady food and personal care orders. Nevertheless, new single-use plastics regulations pushed some buyers toward more recyclable materials, reducing Polystyrene demand. The electrical and electronics sector, however, struggled. Production lagged behind last year and was expected to drop another 2% for the year. High energy prices, bureaucracy, and weak exports hurt the industry, especially for Polystyrene HIPS grade used in electronics and appliances.
Exports offered some support. Shipments to nearby EU nations and North Africa helped prevent steeper price drops, even as local Polystyrene demand stayed weak. Buyers increasingly preferred more sustainable options, so recycled-content grades commanded higher prices in packaging and insulation.
Looking ahead to November, ChemAnalyst’s forecasts suggest another 1.2% decline. After the autumn restocking period, demand slows, particularly as construction activity tapers off with colder weather. Relatively lower energy costs may benefit producers, but many manufacturers want to clear inventory before year-end—adding further pressure on Polystyrene prices.
For December, little relief is expected. Another 1.3% dip is likely. Factories slow for the holidays, demand drops, and styrene feedstock prices fall as petrochemical plants reduce operations. On the positive side, exports could help set a price floor, even as domestic Polystyrene consumption takes its usual seasonal break.
