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.
For the Quarter Ending March 2024
North America
In the intricate tapestry of the North American expanded polystyrene (EPS) market during the first quarter of 2024, a nuanced blend of stability and expansion unfolded. The outset of the year maintained a steady equilibrium, with prices steadfast in January. This mirrored a landscape of cautious procurement and ample supplies, echoing the sentiments of the preceding year's closure.
February introduced a subtle incline, driven by the creeping escalation of feedstock prices, foreshadowing the encroaching cost pressures permeating the market. March marked a notable shift, witnessing a surge in EPS prices in the US to USD 2150/MT, fuelled by robust demand emanating from the construction and packaging sectors. The intricate sway between supply and demand dynamics played a pivotal role, with constrained production struggling to match the burgeoning needs of downstream industries, thereby nudging prices upwards.
The quarterly trajectory depicted a market grappling with the intricacies of inventory management while endeavouring to cater to the escalating demands of industrial sectors. This narrative unfolded against a backdrop characterized by inflationary challenges and fluctuations in energy costs, adding further layers of complexity to the landscape.
APAC
The APAC Expanded Polystyrene (EPS) market navigated through a first quarter of gradual growth and market dynamism in 2024. Prices in China began the year with a subtle uptick in January, reflecting a cautious optimism in the market. The momentum continued into February, as prices climbed by 1.9% due to the normalization of production rates post-Chinese New Year and climbing feedstock costs. As March arrived, the market saw prices inch up by another 1.1%, settling at USD 1380/MT on FOB -Qingdao basis. This was spurred by increasing demand in packaging and construction sectors, where EPS's lightweight and insulating properties are highly valued. Throughout the quarter, the EPS market dealt with fluctuating supply chain scenarios but maintained a stable supply-demand balance. Growth in the manufacturing PMI provided an additional boost, hinting at enhanced domestic and international order flows. Despite varied pressures, from feedstock price movements to logistical challenges, the market's ability to sustain a gradual price increase indicates resilience and adaptability to the ongoing industry demands and economic conditions.
Europe
The European expanded polystyrene (EPS) market saw diverse trends in the first quarter of 2024, with Germany's market providing a clear snapshot. Starting the year with a slight dip in prices to EUR 1870/MT, the market encountered sluggish demand and high stock levels, leading to modest trading activity. February brought a reversal of fortunes, as prices surged by 4.3% due to increased production costs, influenced by rising feedstock prices and disruptions in the Red Sea. Despite these challenges, downstream demand remained tentative amidst growing freight costs. March witnessed a significant 9.7% leap in EPS prices, reaching EUR 2140/MT. This jump was propelled by a spike in packaging demand and supply chain hurdles stemming from protest-related disturbances. While styrene prices provided some stability, logistical issues predominated, leading to tighter EPS supplies, and driving up costs. As the quarter closed, the market began to recalibrate, balancing the earlier disruptions with a careful eye on evolving demand and supply equations.
