PS import prices decreased again in November, maintainaining the gap with domestic European prices.
European polystyrene (PS) prices have suffered heavy losses in the past few months, dropping below €2,000/mt.
A slowing demand and an overheated market provided the ingredients for the sharp falls in August and September in Europe.
Meanwhile, exporters to Europe facing weak market conditions also in their domestic markets lowered their offers to maintain order intake.
Import prices in November in Europe have therefore remained €250-300/mt below European prices for general purpose polystyrene (GPPS).
The lower values keep the pressure on European producers to reduce prices.
Despite the stable prices of the monomer styrene, increasing only by €4/mt in November, PS prices could post losses.
While low demand and competitive imports remain major drivers, the lower gas prices are allowing buyers to also revert the recent energy surcharges imposed by producers.
The outlook for the rest of the year sees a slowdown in the downward trend. But all the signals suggest a rebound may be the least likely scenario.
The major factors that will shape the market environment next year are seeing little to no improvement, namely inflation, the war, and the Chinese economy.