For the Quarter Ending March 2023
North America
The Polystyrene market had conflicting sentiments in the first quarter of 2023 as a result of fluctuating upstream (crude oil) prices in the regional market. As the demand-supply imbalance widened and production costs rose, the price of Polystyrene soared towards the end of the quarter. US laborers went on strike in protest for better pay and working conditions. The domestic Polystyrene market's manufacturing rate was influenced at the conclusion of the previous quarter by lowering temperatures and rainfall. The final costs of Polystyrene in the US market decreased proportionally as downstream purchasing activity decreased.
Asia-Pacific
Polystyrene prices in the Asia-Pacific market have been steadily declining due to a slow production rate. The first quarter saw a dip due to declining upstream (crude oil) prices on the worldwide market; consequently, suppliers and end users stocked up on the product. Additionally, the product's downstream packaging sector demand in February was weak, which had a proportionate effect on the ultimate prices. Additionally, there were additional issues at play in the second half of the quarter, including supply chain delays and trucker strikes. The Chinese market was quiet for the entirety of the quarter due to low demand for the product throughout the spring holidays. Prices in the Asian market were impacted by fewer supplier inquiries.
Europe
The Polystyrene market displayed unfavorable market sentiments during the first quarter of 2023 as a result of low pricing for the material in the local market. Along with fluctuating crude oil prices on the domestic market, the product's demand fell. Although the inflation rate stabilized, the overall polystyrene market continued to trend downward. In spite of local seasonal fluctuations, the demand for the product decreased due to rising energy costs and a low employment rate. Slow demand in the polystyrene and solvent sectors influenced the ultimate costs of the material in the European market.
For the Quarter Ending December 2022
North America
Polystyrene prices varied in the fourth quarter of 2022 due to shifting crude and feedstock Styrene prices. While the first and last months showed an increase in prices, the second month of the quarter experienced a decline in prices. Additionally, December's low temperatures and festive holidays reduced the amount of Polystyrene produced in the US. The downstream market's purchasing activity decreased proportionately, which had an effect on Polystyrene's final prices. There was downward pressure in the price realization of Polystyrene in the US markets due to the low comparable freight rates between the US and Asian markets. Polystyrene GPPS FAS Houston (USA) was averaged at USD 2213/MT.
APAC
On account of falling feedstock Styrene prices, the Asia Pacific market saw a steady reduction in Polystyrene prices. The fourth quarter saw relatively low prices for the commodity due to strong production rates and weak demand from the downstream industries. Due to COVID restrictions and weak demand in the domestic Chinese market, the Chinese market remained quiet in Q4. Additionally, Q4 saw a string of declining upstream prices, which enabled companies to step up production and later stockpile, resulting in adequate supplies in the region. Polystyrene GPPS FOB Busan (South Korea) prices were assessed at USD 1553/MT.
Europe
The market for Polystyrene displayed negative market sentiments throughout the last quarter of 2022 as a result of shifting upstream crude oil prices in the European market. In the midst of fluctuations in the global crude oil value, Polystyrene demand remained low. However, there was some stabilization in the inflation rates in the European region, and the price of Polystyrene continued to decline during the quarter. Downstream derivatives such as Expanded Polystyrene, SBR, and SAN likewise followed a similar pricing trajectory in line with the low prices of Polystyrene. Furthermore, traders lowered their offers to maintain a balance between supply and demand. Polystyrene GPPS FD Rotterdam (Netherlands) was assessed at USD 1670/MT.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the prices of Polystyrene followed an upward trajectory in the US market. One of the significant manufacturers of Polystyrene, American Styrenics, announced a spike in Polystyrene prices, significantly impacting the final prices in the region. As per the producers, the heat waves moved the production cost. Electricity demand increased in industrial and residential areas, leading to electricity prices. Furthermore, the market sentiments for Polystyrene in the US market continued to be driven by demand from the packaging industry and thermoplastic insulated containers. Due to declining feedstock prices, the market dynamics for US polystyrene continued to trend lower throughout this August week. As domestic crude oil costs continued to decline, so did the expense of making Polystyrene. High commodity prices compel end consumers to prioritize their wants, resulting in decreased demand for products produced of Polystyrene in the US market.
APAC
The prices of Polystyrene remained diminishing throughout the third quarter of 2022 in the APAC region. The key factor governing the market sentiments of Polystyrene is the diminishing prices of crude oil in the international market. Feedstock Styrene prices kept declining in the Chinese market, proportionally impacting the market prices of Polystyrene. In the first week of August, the prices of Polystyrene observed a decline of 2.1% in the Chinese market, settling the prices at USD 1549 per MT, GPPS FOB Qingdao, and USD 1512 per MT. The Chinese market showcased a low product manufacturing rate of Polystyrene throughout the week as the demand for the product from downstream, food packaging, and electronic appliances remained weak. Additionally, the market in India continues to experience a decline in the need for packaging and insulation for electrical appliances, which directly impacts Polystyrene pricing.
Europe
Polystyrene prices in the European market keep decreasing this quarter due to overall commodity price inflation. High production costs took the lead in determining Polystyrene pricing trends. The price of feedstock Styrene in the German market stayed on the lower edge throughout the week, according to the leading manufacturers, affecting the cost of Polystyrene. The new PS rates from Ineos Styrolution included a €210/tonne cut, which led to lower Polystyrene costs in Germany. Due to weaker demand and higher utility costs, producers reduced their output rates. On August 26, the pricing was set at USD per 2338 MT, GPPS FD Hamburg, and USD 2220 per MT, HIPS FD Hamburg.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, the prices of Polystyrene followed the upward trajectory in the North American region by approximately 4%. The prices were assembled at USD 2354 per MT, GPPS FAS Houston, and USD 2930 per MT, HIPS FAS Houston USA, towards the quarter end. Major manufacturers such as INEOS Styrolution and Kraton Corporation increased the prices of Polystyrene in the regional market. Strong demand for food packaging and insulated appliances became the driving force for the inclined prices. Furthermore, the upstream styrene prices remained on the higher edge on the back of crude oil prices in the North American market. Rising temperatures elevated the demand, consequently increasing the production cost. The significant players of supply shortage, frenzy supply, and surging demand impacted the prices of Polystyrene in the North American market.
Asia-Pacific
In the second quarter, approximately a 3% price hike was witnessed in the prices of Polystyrene in the Asia-Pacific market. Asian countries suffered from restricted transportation elevating the market prices of Polystyrene. A major manufacturer of Polystyrene, China went under strict lockdown as COVID infections reoccurred in the country, halting the production rate in the regional market. With the increase in crude oil prices, styrene prices also elevated throughout the quarter. The demand from packaging and disposable cutlery industries in countries such as India and South Korea governed the elevated market prices of Polystyrene in the Asia-Pacific market. The prices observed were at USD 1656 per MT, GPPS FOB Qingdao China towards the quarter end.
Europe
In the European market, the prices of Polystyrene got assembled at USD 2895 per MT, GPPS FD Hamburg, Germany, in June month. European countries suffered from commodity inflation throughout the quarter leading to price escalation in Europe. Feedstock and Styrene prices remained high on the back of increasing crude oil prices. Furthermore, rough feed transportation, high electricity costs, and labor shortages hinder the operational rate of Polystyrene in Europe. Sanctions applied by the regional counties also led to tight supply impacting the market prices of Polystyrene. Burgeoning demand from packaging, electronic appliances, and automobiles kept driving the market sentiments of Polystyrene in the European market.
For the Quarter Ending March 2022
North America
The prices of Polystyrene in the North American market were driven by the feedstock prices showing oscillation in first quarter of 2022. The prices of Polystyrene at the quarter end surged to USD 2262/ton, GPPS FAS Houston, USA. Hike in the feedstock prices were accompanied by the soaring crude oil prices as an ill effect of the growing political tension between Russia and Ukraine. Furthermore, the demand from packaging industries have increased with rapid urbanization demand for electronic appliances, automobile enterprises have elevated the prices in the North American market. Supply chain disruption impacted the production rate, affecting the prices of Polystyrene. When compared with Q4 of 2021, Polystyrene prices have shown slight difference of 0.4% in the North American market in the first quarter of 2022.
Asia Pacific
In Q1 of 2022, the Asia Pacific market witnessed growth of 9.1% as opposed to Q4 of 2021. The surge in the prices occurred due to surging feedstock Styrene prices and high crude oil prices. In China, the prices observed ranged between USD1440/ton GPPS FOB Qingdao in the month of January and USD1530/ton GPPS FOB Qingdao towards the quarter ending March 2022. Prices of Polystyrene were accelerated because of limited supply and surging domestic demand. Furthermore, after the implementation of lockdown in China, manufacturers had to halt the production temporarily, leading to tight supply in the Asian market. Demand from downstream sectors such as insulation and packaging remained stable, impacting Polystyrene market in the region.
Europe
The prices of Polystyrene in Q1 of 2022 observed an exponential growth of 13% in contrast with the Q4 of 2021. In January, Polystyrene prices were observed at USD2235/ton GPPS FD Hamburg and USD2406/ton GPPS FD Hamburg, Germany. Price escalation was observed as crude oil prices spiked up after the tension between Russia and Ukraine which elevated the production cost among the downstream enterprises. Manufacturers faced uncertainty in feedstock supply which hampered the production of Polystyrene in European market. Major producers of Polystyrene faced logistics hurdles, and port congestion for the overseas suppliers which surged the prices.
For the Quarter Ending December 2021
North America
In Q4, the prices of Polystyrene observed to be slipped compared with Q2 and Q1. The prices hit their lowest in the last week of December where prices dropped to $2140/ton GPPS FAS Houston. Polystyrene exports declined in the opportunistic arbitrages with China and Europe amid US domestic supply lengthdue to reduced derivative styrene operating rate. Another factor that come into play is the dominance of Taiwan in the feedstock Styrene export in the globe. However, the strong freight charges and demand deterioration fell the US Polystyrene prices in the market. Demand from downstream Polystyrene has soften in this quarter as inconsistency in volume intakes has been observed from key Polystyrene manufacturers.
Asia Pacific
In Q4, the Asia Pacific market witnessed exponential growth in the prices due to surge in feedstock Styrene and Benzene. In India, the prices were observed to be maxed on 5-Nov and surged to $2102/ton (HIPS) IM Grade Ex-Mumbai. The prices rose because of limited supply and healthy trading market. Upstream Ethylene and Benzene market was also observed to be retrieving due to increasing crude oil price due to consumer demand for heating and other applications in winter. In China, the prices in the last week of December surged to $1395/ton FOB Qingdao amid sufficient supply and strong demand. The exports to South Korea and Vietnam from China were operated moderately due to increasing demand of product in that region. Downstream insulation and packaging industries worked stably with increase in sales revenue.
Europe
In Q4, the prices of Polystyrene observed to be stable on the upper end. December prices of Polystyrene in Germany observed to be on their peak compared to other two months. (HIPS) FD Hamburg prices in December were $2270/ton. The prices in December increased by 9.71% and 4.36% compared with October and November respectively. Inadequate stock of Styrene and its feedstock the European market, made issue in the locale to meet the necessities in their domestic as well as in international market. Deficiency of raw material Benzene and Ethylene hampered the Styrene market. Saudi Arabia, which is the major exporter of Styrene to the International market, had also revised its price due to supply demand gap for European market.
For the Quarter Ending September 2021
North America
In North America, the Polystyrene market remained firm during Q3 backed by the hike in the prices of feedstock Styrene and Benzene. However, increment in the values of Polystyrene was marginal as the demand for other versatile products outpaced the demand for Polystyrene in the regional market. In August, many manufacturers in the Gulf Coast of USA were compelled to shut their production plants as a repercussion of the Ida hurricane. For instance, AmSty imposed a turnaround at its Styrene production plant having capacity of 950 KTPA. Ida Hurricane, led to the disruption in the production rates and supply chains that consequently resulted into tight supplies of the product in the US. FAS-Houston Polystyrene HIPS grade prices were assessed at USD 2690 per Tonne in July.
Asia Pacific
In Q3 2021, prices of Polystyrene showcased a steep climb in the Asian market owing to the constraint supply and high demand. Hike in the values of upstream Styrene in the international market also affected Polystyrene Prices in the Asian region. In China, a spike in the PP prices was observed in this timeframe backed by the congestion on several ports of China due to the temporary closure of Ningbo Port in the wake of Covid19 zero-tolerance policy. In India, Polystyrene demand witnessed improvement as there was a rebound in the industrial and commercial activities in this quarter. Moreover, extreme shortage of shipping containers and high freight charges also contributed to the pricing trend of Polypropylene in India. EX-Mumbai HIPS Grade Polystyrene prices were assessed around INR 183330 per Tonne in September showcasing a marginal increment by nearly USD 60 per Tonne since July.
Europe
During the third quarter of 2021, Polystyrene market outlook witnessed a downfall in this quarter backed by the sufficient feedstock supplies in the region. In addition, a drop in the prices of Polystyrene also supported the decline in the costs of SM grade. Moreover, low production rates in the region due to energy crisis also dampened the Polystyrene market in this quarter. FD Hamburg prices declined to USD 1880 per Tonne from USD 2090 per Tonne in the timeframe of July to September.
For the Quarter Ending June 2021
North America
Overall, the North American market observed a steep increment in the Polystyrene pricing trend at the starting of the second quarter, then continued the upward trajectory at a slow pace. Supply conditions improved in Q2 2021, as compared to the previous quarter owing to resumption in production at several operating rates and ample availability of the upstream Styrene. The demand outlook observed a robust growth owing to multiple factors such as strong enquiries from the building and construction sector and constant offtakes from the packaging and consumer goods sector. Due to the upcoming hurricane season in the next quarter, market sentiments to procure large Polystyrene orders were high amidst growing competitiveness among the buyers. As a ripple effect, the FAS Houston pricing discussion of Polystyrene HIPS grade settled at USD 3100 per tonne in June.
Asia Pacific
Polystyrene market outlook in the APAC region showcased mixed sentiments during the second quarter of 2021. In India, the Polystyrene demand outlook remained subdued amidst restricted industrial and commercial activities due to the second COVID wave across the country. As a repercussion, offtakes were curtailed even though several traders were trying to control the pricing trend through regulating supplies. Whereas, in China commission of new upstream Styrene monomer facilities kept the supplies lengthened during the second quarter of 2021. In June, FOB Qingdao Polystyrene prices were assessed around $2390 per tonne. However, some hinderance was witnessed in the consuming sectors as the power outage and rising COVID cases limits the industrial and trading activity in South China’s Guangdong province.
Europe
During the second quarter of 2021, Polystyrene supplies improved compared to the previous quarter owing to ample availability of the upstream Styrene monomer and improved operating rates in the production facilities. Demand outlook remained upbeat throughout the quarter amid buyers actively seeking to replenish inventories to cater to strong industrial rebound. Market players observed seasonal hike in demand from the building and construction sector, however, offtakes were muted from other end consumers.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, the supplies of Polystyrene were tight, as several Styrene monomer plants went for maintenance turnarounds during the H1 of Q1, followed by the production disruptions caused due to extremely freeze weather conditions in the US gulf region resulting in plant outages in mid-February. However, the demand surged as the utilization improved from the downstream automotive sector and construction sector. Demand for Expanded Polystyrene (EPS) from food packaging applications kept the sentiments raised although persistent feedstock tightness raised Polystyrene contractual offers.
Asia-Pacific (APAC)
The supplies in Asian region improved as compared to last quarter, as major production facilities boosted the efficiency rates, as they returned from the prolonged turnaround period in the region. However, in early February, amid the earthquake in Japan some plants were forced to halt their productions which put constraints in the feedstock styrene supplies. The demand surged as the consumption improved due to the rebound of automotive sector. The inflation in upstream products consequently surged the prices of Polystyrene in the Asian markets. The quarterly average of the General-Purpose PS (GPPS), moulding grade in the Indian market was estimated to be around USD 1789/ton.
Europe
The European PS supplies were tight during the first quarter, as the availability of feedstock remained constrained due to major styrene producing plants in the region declared force majeure in early February. However, the demand witnessed mixed results as the second wave of COVID caused the lockdown in major economies across the region resulting in restricted mobility and commercial activities, followed by the slowly improving automotive sector. The demand for packaging materials however, remained high throughout the quarter.
For the Quarter Ending September 2020
North America
The third quarter proved to be muted for the North American Polystyrene industry. While demand from the medical and packaging sector remained resilient, the demand from larger segments, such as appliances, automotive and construction, are yet to show significant improvement due to high unemployment rates and hovering uncertainty in the economic growth. Polystyrene players maintained their run rates around 70-75% to grapple with the softening margins.
Asia
Asian Polystyrene players have reported healthy margins due to restocking activities by downstream packaging and disposable sectors while some countries prepare themselves for the upcoming festive season. However, some plant turnarounds which are expected in South Korea and Malaysia by the end of the October month may impact the supply chains. While the market still seems susceptible to fluctuations in the upstream Styrene values, Southeast Asian activity head towards improvement as some regional importers increase their run rates.
Europe
The Q3 results of the European Polystyrene remained satisfactory in anticipations that demand from the construction sector would gain focus in the upcoming months as the region bounces back from the COVID led disruptions. Steady demand for PS grades used for food packaging and medical applications will continue to widen the product margins. The quarter ended with AmSty, INEOS Styrolution and Trinseo signing a Joint Development Agreement (JDA) to ensure the circularity of Polystyrene through the first-of-its-kind Polystyrene recycling plant in France to widen the product scope.
