For the Quarter Ending March 2025
North America
The Expanded Polystyrene (EPS) market in North America exhibited a cautious trend throughout Q1 2025, shaped by seasonal reduction in construction activities and moderate demand from packaging applications. Especially in USA, during January, EPS prices remained relatively steady amid limited procurement, as harsh winter weather suppressed insulation demand. February saw a marginal decline in prices, attributed to subdued industrial activity and high inventories in key distribution hubs.
However, March brought moderate improvements to the EPS market, with early construction restocking and a slight growth in packaging demand supporting price sentiment. Traders reported increased inquiries from insulation companies as weather conditions began to improve. Feedstock styrene prices remained largely stable, helping manufacturers manage their production costs efficiently.
Despite some competitive pressure from imports, suppliers in the region maintained consistent production rates and inventory control. The quarter concluded with EPS prices assessed at USD 1,200/MT by the end of March 2025, supported by gradually improving domestic consumption and expectations of seasonal construction growth in Q2.
APAC
Across the Asia-Pacific region, EPS market trends varied significantly by country but generally remained bearish through the first two months of the quarter. China witnessed continuous price decrease through January and February due to weak post-holiday demand and average downstream resumption, particularly in packaging and construction segments. Styrene feedstock prices also declined during this period, offering limited cost support. In early March, prices stabilized as seasonal construction activity picked up and downstream companies resumed operations more fully. In South Korea, EPS prices reduced slightly in February following a moderate rise in January, driven by modest export orders and a restocking push from packaging sectors. By March, prices showed signs of recovery due to tighter inventories and increased demand from infrastructure projects. In India, prices dropped significantly by February end amid bearish demand and increased import competition and then remained largely stable through March despite slight recovery in construction. Regional dynamics were shaped by a mix of cost-led pricing strategies and supply adjustments.
Europe
In Europe, during Q1 2025, quotes for EPS were influenced by moderate volatility and seasonally driven trends. January opened the market with relatively stable prices supported by ongoing insulation demand from cold-weather construction activity, particularly in Northern and Central Europe. However, February saw slight downward adjustments in prices, as the region faced reduced demand and average industrial production. Packaging demand, while consistent, failed to balance the decline in construction-related consumption. Producers managed to maintain operating efficiency, aided by stable styrene feedstock pricing, but rising competition from imports further affected the margins. By March, sentiment stabilized as pre-spring construction inquiries got increased, prompting some restocking activity across select markets like Germany and France. Nonetheless, the demand rebound was slow, and suppliers remained cautious with planning and maintaining their production rates. Overall, the European EPS market trend moved within a narrow price range through the quarter, with no major disruptions but limited growth rate due to continuous market hesitation and weak export demand.
For the Quarter Ending December 2024
North America
In Q4 2024, the Expanded Polystyrene (EPS) market in North America faced a period of adjustment amid shifting economic conditions and consumer preferences. The construction industry, historically a strong driver of EPS demand, encountered significant challenges due to rising interest rates that curtailed new housing projects and renovations. As a result, many EPS manufacturers reported decreased orders from construction firms, particularly for insulation applications.
However, the packaging sector emerged as a bright spot. The continued growth of e-commerce fuelled demand for EPS in protective packaging solutions, especially for fragile items. Companies focused on enhancing the performance characteristics of EPS packaging to meet the rising expectations for durability and sustainability.
Additionally, environmental regulations prompted manufacturers to invest in recycling technologies and explore bio-based alternatives to traditional EPS. By December, while some producers adjusted their inventories in response to fluctuating demand from construction, the overall market sentiment remained cautiously optimistic. Stakeholders anticipated that innovations in sustainable EPS solutions would drive recovery and growth into 2025, aligning with broader industry trends toward eco-friendliness.
APAC
In Q4 2024, the Expanded Polystyrene (EPS) market in the APAC region, particularly in China, saw dynamic shifts influenced by both demand and regulatory changes. The construction sector remained a primary driver, with EPS being increasingly adopted for thermal insulation in residential and commercial buildings. This trend was bolstered by government initiatives aimed at enhancing energy efficiency and reducing carbon footprints in line with sustainability goals.
The packaging industry also played a crucial role, with EPS used extensively for protective packaging in the booming e-commerce sector. As online shopping surged, companies sought lightweight and durable materials to ensure product safety during transit.
However, the market faced challenges from rising raw material costs and growing environmental concerns regarding plastic waste. In response, manufacturers began exploring biodegradable alternatives and enhancing recycling processes for EPS products. By December, while some companies adjusted their production schedules due to fluctuating demand, overall sentiment remained positive. Stakeholders anticipated continued growth into 2025, driven by innovations in sustainable EPS applications and increasing regulatory support for eco-friendly materials across the region, because of which prices of EPS were observed to be around USD 1,265 per MT.
Europe
In Q4 2024, the Expanded Polystyrene (EPS) market in Germany encountered significant headwinds, primarily driven by shifts in construction activity and regulatory pressures. The construction sector, which traditionally relies heavily on EPS for insulation, faced a downturn as rising interest rates dampened new housing projects and renovations. This slowdown led to reduced demand for EPS in thermal insulation applications, particularly in residential buildings.
Conversely, the packaging industry showed resilience, with EPS maintaining its role as a preferred material for protective packaging in e-commerce and food delivery services. The trend toward sustainable packaging solutions prompted manufacturers to innovate, exploring biodegradable alternatives and enhanced recycling processes for EPS products.
Additionally, regulatory changes aimed at reducing plastic waste further influenced market dynamics. Companies began investing in research to develop EPS formulations with lower environmental impacts, aligning with Germany's stringent sustainability goals. By December, while inventory levels adjusted due to reduced construction demand, the overall sentiment remained cautiously optimistic. Stakeholders anticipated a gradual recovery into 2025, driven by ongoing innovations and a potential rebound in construction activities.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Expanded Polystyrene (EPS) market experienced a continuous decline in prices, driven by a combination of factors affecting demand and supply dynamics. The market faced challenges such as reduced demand from key sectors like packaging and construction, alongside an oversupply scenario that further pressured prices downward. Additionally, economic uncertainties led to cautious purchasing strategies, while seasonal factors contributed to lower industrial activity.
In the United States, where these trends were most evident, the market observed a -3.0% decline in prices compared to the previous quarter. This trend highlighted the sustained pricing pressure, and the difficulty faced by producers in maintaining price stability amidst weakening demand. The second half of Q3 saw a sharper decline in prices, with a notable drop in September, driven by continued demand softness and high inventory levels.
The quarter concluded with the price of Expanded Polystyrene White DEL Texas at 1881 USD/MT, reflecting the lowest point of the period. This quarter-ending price underscored the overall bearish market sentiment and the ongoing challenges in the EPS sector, characterized by persistent downward pressure on pricing and subdued market conditions.
APAC
During Q3 2024, the Expanded Polystyrene (EPS) market in the APAC region exhibited a mild but consistent decline in prices, influenced by several contributing factors. Subdued demand from critical sectors like construction and packaging, coupled with an oversupply situation driven by high inventory levels and steady production rates, played a pivotal role in pushing prices downward. Market participants adopted a cautious purchasing approach amid global economic uncertainties, which further pressured prices. Additionally, a decrease in feedstock styrene costs helped lower production expenses, fostering a competitive pricing environment among manufacturers. In China, where the price changes were most pronounced, the market faced seasonal effects, with a typical slowdown in construction activities as winter approached, further diminishing demand. This decline was compounded by broader economic challenges, weakening export demand, and the buildup of inventories, contributing to the downward pressure on prices. The EPS market recorded a -1.3% decrease from the previous quarter and a -2% decline between the first and second halves of Q3. The quarter concluded with EPS prices at 1365 USD/MT FOB Qingdao, underscoring a challenging pricing environment shaped by oversupply and weaker demand.
Europe
In Q3 2024, the Expanded Polystyrene (EPS) market in Europe faced a pronounced decline in prices, driven by a range of factors that put downward pressure on market dynamics. A key theme throughout the quarter was subdued demand from vital sectors like construction and packaging, as economic uncertainties dampened industrial activities across the region. Additionally, the market struggled with an oversupply situation, exacerbated by high inventory levels and stable production rates, which further contributed to the downward pricing trend. Competitive pressures, particularly from imports originating in Asia, compelled domestic producers to adjust their prices downward to remain competitive. The decline in feedstock styrene costs also contributed to lower production expenses, facilitating these price adjustments. Germany, as a major player in the European market, saw significant price fluctuations. The overall trend in Germany was marked by a steady decline, with seasonal slowdowns in construction activities and broader economic challenges further influencing the pricing environment. Compared to the same quarter last year, prices were down by around 1%. The quarter-on-quarter change indicated a sharper decline of about 4.3%. By the end of Q3, EPS prices settled at USD 2049/MT on an FD Hamburg basis, highlighting the sustained pressures in the market and the challenging conditions for producers throughout the period.
For the Quarter Ending June 2024
North America
Expanded Polystyrene (EPS) experienced a downward price trend in North America during Q2 2024, driven by multiple market forces. The quarter was characterized by a weakening demand from key sectors such as construction and packaging, leading to an oversupply in the market. This imbalance exerted considerable downward pressure on EPS prices.
Reduced production costs, owing to lower feedstock styrene prices, further contributed to the overall decline. Cautious market sentiments, fuelled by economic uncertainties, also deterred large-scale purchasing. In the USA, where price volatility was most pronounced, the EPS market reflected these broader dynamics, with prices exhibiting significant changes due to seasonal fluctuations and inventory adjustments. As the demand from downstream industries dwindled, oversupply concerns became more pronounced, causing suppliers to offer discounts to clear high inventory levels.
This quarter saw a notable decrease from the same period last year and a 6.8% decline from the previous quarter in 2024. A closer examination of the quarter reveals a consistent decreasing trend, with a 1.6% price drop noted between the first and second halves of Q2. The quarter ended with EPS Grey traded at USD 2,125/MT on DEL Texas basis. The overall pricing environment has been negative, reflecting bearish market conditions. Despite intermittent demand from steady sectors, high inventories and cautious economic outlooks have perpetuated a declining price trajectory for EPS in the USA.
APAC
The second quarter of 2024 for Expanded Polystyrene (EPS) in the APAC region demonstrated a pronounced upward price trajectory, driven by a confluence of factors. Market prices surged primarily due to intensified demand from key downstream sectors such as packaging, construction, and insulation. This robust demand was compounded by heightened feedstock costs, notably styrene and polystyrene, which surged in tandem with fluctuating crude oil prices. Additionally, logistical challenges and supply chain disruptions further stressed the market, exacerbating the scarcity and propelling prices upward. The quarter also saw elevated freight charges and geopolitical tensions contributing to increased production expenses, thus influencing market sentiment. In South Korea, the EPS market experienced significant price volatility, recording the highest price changes in the region. This market exhibited a solid bullish trend, underpinned by consistent demand from construction and packaging industries. Seasonality played a pivotal role, with peak construction activities directly correlating to the price hikes. The overall trend indicates a substantial increase from the same quarter last year, reflecting a robust growth trajectory. The quarter-on-quarter price escalation stood significantly, highlighting steady market momentum. Within the quarter, a 1.5% price rise was observed between the first and second halves, confirming continuous upward pressure on prices. The quarter concluded with EPS prices at USD 1585/MT FOB Busan, underscoring a positive pricing environment. This consistent increase suggests a resilient market bolstered by strong demand fundamentals and constrained supply channels, reflecting an overall positive sentiment in the pricing landscape.
Europe
The second quarter of 2024 has been characterized by stable prices for Expanded Polystyrene (EPS) across the European region. This stability can be attributed to several key factors. Firstly, there was a balanced supply and demand scenario, with no significant shifts in either direction. The market had already secured substantial inventory levels from the previous quarter, leading to a well-supplied state and reducing the need for price adjustments. Additionally, there were no major disruptions or changes in demand from key downstream industries like construction and packaging. The consistency in upstream raw material costs, such as polystyrene and styrene, further contributed to the stable pricing environment. Focusing on Germany, which experienced the maximum price changes within the quarter, the market saw overall trends reflective of the wider European sentiment. The seasonality did not bring about significant fluctuations, maintaining a stable market environment. The price correlation with other European markets and commodities remained consistent. Interestingly, the price comparison between the first and second half of the quarter showed no variation, underscoring the stability of the EPS market. The quarter ended with EPS priced at USD 2,195 per metric ton on FD Hamburg basis. Overall, the pricing environment has been stable, reflecting a well-balanced market supported by steady demand and supply conditions.
