As the Supply Increases, Polystyrene Prices Fall Steadily Throughout Europe

Moscow: The contract price of Polystyrene (PS) in Europe declined by USD 100 per tonne in March 2023, owing mostly to a USD 113 per tonne drop in the contract price of Styrene. Although some players believe that supply is overly balanced, the market remains in surplus. Continually, suppliers match demand levels and results separately. Prices for Polystyrene declined to USD 1820 per tonne for General Purpose Polystyrene Grade (GPPS) and USD 1930 per tonne for High Impact Grade Polystyrene(HIPS) in the recent week ending on March 24.

The European Construction sector continues to see notably low demand, as make consumer electronics sales, while packaging demand remains consistent. Furthermore, TotalEnergies has declared a state of force majeure for the French Polystyrene industry, which is anticipated to have an impact on the Carling and Gonfreville factories. Force majeure was reportedly announced on March 22 as a result of nationwide pension-related strikes, according to various market sources and an official letter. The statement added that supplies are anticipated to have trouble in the upcoming weeks, and it is unclear how long force majeure may last.

On the other hand, the expected consumption of Polystyrene and Styrene plastics in Russia in December was 36.83 thousand tonnes, down 23% from December of the previous year. The predicted use of Polystyrene and Styrene plastics for the entire year of 2022 was 531.03 thousand tonnes, which is 5% less than the consumption for the prior year.

The German Polystyrene spot market moved slowly in the week ending March 24 due to low trading volume. European consumers have not been very interested in buying, and demand has been moderate. Lower orders in the downstream Polystyrene market were highlighted by derivative market sellers as indications of weak end-user demand higher up the value chain, which had a negative influence on consumption further up the Styrene chain. Market sources claim that production run rates are at manageable levels as manufacturers compete in a continually long market.