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EUROPEAN PS MARKET SHOW SIGNS OF TIGHTNESS

February 8, 2024

The European PS market shows signs of tightness. Players in the European polystyrene (PS) market appear to be witnessing a discernible tightening in February.

This is marking a departure from the ample availability that buyers enjoyed in recent months.

A number of buyers are said to be finding increasing difficulties in securing additional volumes, signaling a shift in supply dynamics from the past few months.

This tightening can be attributed to several converging factors.

Firstly, are facing significant disruptions. Ongoing issues in the Middle East affecting the Suez Canal are leading to delays and increased import prices.

The canal’s disruptions are prompting buyers to lean more heavily on domestic supplies within Europe, exacerbating the supply shortage.

Compounding the issue, a sense of urgency among buyers may be becoming palpable. As prices begin their upward trajectory, there is a growing concern that costs could spiral further, leading to panic buying.

Moreover, the situation is aggravated by the operational strategies of suppliers. Many have been running their plants at reduced capacities, a measure taken in response to previous market conditions.

This cautious approach, while prudent during times of lower demand, has left suppliers struggling to ramp up production swiftly in the face of the sudden increase in demand.

In summary, the convergence of these factors—supply chain disruptions, rising prices, and operational constraints—presents a complex challenge for the European PS market.