Germany’s Polystyrene market stayed under downward pressure in early September 2025, with prices falling by 2% in the second week. This was the twelfth straight week of declines, continuing a trend that began in July.
The fall in Polystyrene prices has been steady rather than abrupt. It began with a 1.2% drop in early July, followed by several weeks of no change. Mid August brought a moderate fall, then another short pause, before a 2% drop in the last week of August and a further 2% fall during the second week of this month.
Polystyrene market conditions remained cautious as feedstock styrene costs held stable, supported by balanced crude oil and naphtha markets in Europe. With no increase in input costs, producers kept output rates steady. Yet the absence of a seasonal rise in insulation board demand, along with a continued shift by companies toward recycled Polystyrene, left little room for recovery.
Sustainability focused buying continued to guide orders, with recycled content grades gaining more use in packaging and insulation applications. Chemical recycling projects, including the expansion of food grade Polystyrene recovery at the Krefeld facility, strengthened supply security and supported Germany’s circular economy goals. Exports to nearby EU markets and Africa offered some stability, though domestic demand from electronics and construction stayed weak.
In the packaging sector, demand held firm, supported by e commerce activity and regular orders from food and personal care industries. Flexible plastic packaging made with Polystyrene stayed popular for its light weight and durability. Even so, rules on single use plastics encouraged a gradual shift toward recyclable and biodegradable options. This steady but cautious buying matched the 1.1% monthly fall seen in August, as many buyers delayed purchases ahead of expected lower September offers.
The electronics sector continued to limit overall Polystyrene usage. The German electrical and digital industry is expected to shrink by 2% this year, with high energy costs, complex regulations, and weaker export orders slowing production. Demand for high impact Polystyrene in consumer electronics and appliance casings stayed low, adding to the market’s downward pressure.
Looking ahead, ChemAnalyst’s Polystyrene price forecasts show a 1.4% rise in October 2025, supported by seasonal restocking in packaging and a possible tightening in styrene supply from planned cracker maintenance in Europe. This is expected to be followed by falls of about 2.5% in November and December, as slower buying after restocking, reduced construction activity, and year end stock clearances weigh on the market.
Overall, Germany’s Polystyrene market is balancing sustainability led opportunities with ongoing demand challenges. While insulation and protective packaging provide some support, the outlook through the end of this year remains cautious, with movements likely to depend on feedstock trends, export flows, and the pace of industrial recovery.
