During the first week of January 2026, the prices for Polystyrene (PS) resin were stable in both the US and Asia. Both regions have seen limited movement in PS resin trading activity because of cautious supply and demand conditions. Styrene prices in the US have been increasing, while polystyrene prices in the US have remained relatively stable due to benzene oversupply as well as lack of support from crude oil prices. December Automotive sales in the US reflected mixed results. While there was a monthly increase in December's automotive sales numbers, there was also a large decline in sales for the year compared to December 2020 due to concerns regarding affordability of automobiles. PS resin prices in the Asian market, especially in China, have not decreased, with both production levels and supply levels slightly better than those of the previous weeks.
The Polystyrene (PS) prices were stable across US and Asia markets in the first week of January 2025. Limited fluctuations were observed at the start of year amid cautious supply and demand conditions.
The stabilization of PS prices in the US contrasted with moderate increases on styrene prices. Styrene prices became firm despite the shifts seen on raw material availability. However, the styrene market faced pressure with high pure benzene inventories at ports and a weaker tone from crude oil support. Thus, analysts expect weak fluctuations in styrene price range in the short run.
On the other side, PS demand increased in the US automotive sector, which is one of the greatest consumers of polymers, at the tail end of 2025. The sales of new light vehicles in December 2025 rose by 1.9% compared to November and stood at 16.20 million units for the year, which is an increase of 2.2% from 2024. However, data from the Bureau of Economic Analysis for the US indicated that December sales were down by 4.9% compared with the same month last year. The market continues to wrestle with issues surrounding affordability and low consumer confidence. Nevertheless, light vehicle sales are seen as an important cog in the wheel of economic activity, since they go hand in hand with consumer spending patterns and the confidence of consumers in borrowing in the PS market.
Growth of the US automotive sector is anticipated to be soft in 2026. Within this context, ongoing discussions among the participants of the USMCA could provide greater cohesion in the regional market and therefore less reliance on overseas suppliers. The federal fund rate was lowered in December by the Federal Reserve, although the transmission to auto loans, which are mostly fixed rate, is expected to remain nebulous in the foreseeable PS future.
Stability also prevailed on PS prices in Asia, and particularly in China. The PS domestic market ended December on weak fluctuations, given that downstream demand remained soft. Terminal industries like electrical shell manufacturing remained under low operation, and production scheduling did not show significant improvement. PS Buyers adopted cautious replenishment, so trading momentum remained average.
PS supply conditions showed slight improvements in China. The operating rate of the domestic PS industry slightly increased to around 60%, as Guangxi Petrochemical and Lianyungang Petrochemical upped an intermittent operational capacity. The availability of genuine material was more than sufficient, barring a few grades facing tightness. Stocks remained at comfortable levels, while a looser supply outlook is still on the cards.
As per ChemAnalyst, overall, the PS market in both regions entered 2026 flat. Demand remained weak with caution integrated into the sentiment, faltering upstream signals meaning that consolidation may remain for now as the market waits for validation in the economy at large.
