The US Expanded Polystyrene market came under consistent selling pressure during November 2025, with prices falling by around 3.4% from the beginning to the end of the month. Deteriorating demand from the construction industry and better availability of the styrene feedstock led to the continued negative market sentiment.
US Expanded Polystyrene market faced tough conditions in November 2025 as the reduction in prices originally observed in the previous months continued. Market analysis showed that prices in the Expanded Polystyrene Market were falling from the first week of November to the end of November by around 3.4%. This sustained price decline mirrored the aggregated impact of weak demand from downstream industries and favourable feedstock dynamics.
The US construction sector, representing close to half of Expanded Polystyrene demand, was very weak throughout November. Participants noted that construction activity was still depressed due to high borrowing costs and uncertain economic environment. Construction spending has been flat over the past 12 months as the residential and non-residential segments have been facing with higher borrowing costs and economic uncertainty. The deceleration hit hardest in the commercial and industrial building sectors, which have traditionally been major users of Expanded Polystyrene for insulation purposes. Data centre projects and infrastructure spending lent some support, but the segments were unable to counter overall market weakness.
The feedstock styrene price was volatile in November, going up by about 5.6% at mid-month and then stabilizing. The rest of cost support was weak; however supply and demand were tight, which ended in styrene prices moving up during the week. Nevertheless, the broader feedstock situation seemed to stay more positive for Expanded Polystyrene producers compared to the previous months. The styrene price bounce in November was only a small cost support but Expanded Polystyrene buyers downstream continued to be cautious as demand from end users was low.
The packaging sector, being the other major end-use industry for Expanded Polystyrene, showed variable results in November. Although E-commerce activities were still supportive of the demand for protective packaging, the growth in demand for generic packaging continued to be restrained. A few participants highlighted high stocks and less urgency in buying material, which reduced Expanded Polystyrene uptake during the month.
Market participants reported that the Expanded Polystyrene availability stayed ample during November with domestic producers maintaining regular production rates. Local producers were alert, adjusting their production levels in line with weak demand signals. The ample supply, along with declining demand, put pressure on Expanded Polystyrene prices in the month.
Looking forward to December 2025 and early 2026, the sentiment in the market remains bearish. It is expected that the demand for Expanded Polystyrene would remain low in the short term due to the construction activities having no sign of recovering soon. Nevertheless, a possible U.S. Federal Reserve interest rate cut and continued spending on infrastructure may support the Expanded Polystyrene market in the coming months.
