Home Latest News & Insights PS PRICES LIKELY TO REMAIN FLAT IN 2020


December 5, 2019

LONDON (GC Intelligence) – The GC Intelligence price forecasts for both general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) is mainly flat for most of 2020.

Apart from the yearly seasonal movements, there is no clear trend expected to emerge until September 2020, and the risk remains to the downside.

The forecasts assume that there are no shocks to market fundamentals throughout the period, particularly on supply, in the form of unexpected production issues.

While there is a good probability that such events do happen, as they have recently, forecasting the timing, length and impact of such events is impractical.

Nevertheless, the expected better supply and demand balance along the chain in 2020 should limit the impact of such events.

Prices are forecast to decrease by €50/mt in December.

The reason for the decreases is multilayered.

First, this period of the year brings a decrease in demand, due to stock management, and a dip in costs.

Second, a better global supply balance in styrene fuelled expectations that there will not be a rebound in costs well into Q1. Therefore, buyers are in no hurry to fill stocks.

And third, uncertainty over the global economy and the relentless push towards greener solutions means that buyers are cautious.

In 2020, the downward pressure will most likely continue also because of the EU legislation anticipated ban on single use plastics, scheduled to come into effect in 2021.

NOTE: For price indices, forecasts, and a more in-depth analysis take a look at the GC INTELLIGENCE® Market Reports…