Global Polystyrene Prices Dampens as Demand Takes a Dip

Early September has seen a decline in the prices of Polystyrene in the global market. Prices settled at USD 2285 per MT, HIPS FD Hamburg, and USD 2406 per MT, GPPS FD Hamburg, on September 9. The feedstock Styrene price in the Global market also fell, impacting the Polystyrene prices. Furthermore, declining demand combined with lowered production rates were the leading causes.

Turkish players have reportedly received new Polystyrene proposals for September cargoes from South Korean suppliers. As a result, vendors decreased their costs by as much as $170 to $200 per tonne month-on-month. The significant drops were linked to the prior declines in Asian spot Styrene prices, declining freight rates, and lackluster demand from Turkish purchasers for preoccupied cargoes.

Styrene prices controlled the market sentiments for Polystyrene in South Korea as they dropped and showed a continual fall in the feedstock. According to industry experts, the product's poor operational rate in the domestic market was due to slow end-user demand. Insulation and packaging, which are downstream industries, remained competitively weak, resulting in price reductions in the domestic market.

This week, South Korean GPPS prices were assessed at lower rates of $50–60 per tonne at $1685. With the same conditions as levels from last August, South Korean Polystyrene prices for injection molding rates were projected to be $100/tonne less expensive at $1680/tonne.

The downturn in China and Southeast Asia, where Polystyrene and Expanded Polystyrene players gave up to weak demand, coincided with the bearishness.

Despite the summer season, Turkey's overall activity is still sluggish, and reduced feedstock prices have given rise to predictions of further declines for the next month while also decreasing buyer interest. "We will negotiate with our suppliers as their latest proposals do not appear realistic even after monthly cuts," according to a dealer who was offered PS and EPS at the most recent levels.

Polystyrene market Sentiment is expected to remain gloomy soon, mainly due to sluggish demand amid record inflation in Turkey. However, now that crude oil prices have somewhat recovered, participants will assess whether or not the recent firming in Asian styrene markets will be sustainable shortly. Some regional players stated, "Polystyrene and Expanded Polystyrene  demand has been underwhelming so far while we hope to see a resurgence due to the season soon."

Meanwhile, next month Polystyrene and Expanded Polystyrene prices in Europe and Turkey may be lower than in August due to the projected drop in styrene contracts in Europe.