The European polystyrene (PS) market remained oversupplied in January despite the reduced production rates. In the past few months, due to the low demand, suppliers have had to heavily reduce or shut down production.
There were also issues, such as a major producer declaring FM (force majeure). However, the plant has now apparently restarted, and the FM is understood to have been lifted.
The market remains oversupplied despite the low production rates.
However, even if production rates are low, the European PS market remains oversupplied. Suppliers as well as downstream players are under pressure to increase production from the recent low levels, particularly since the high energy costs have been squeezing margins.
Meanwhile, the lack of an energy crisis in other regions and lower demand in Asia increased further the competitiveness of imports. South Europe has been particularly affected by imports which are coming from countries such as Pakistan, Egypt, and Vietnam.
Meanwhile, lower gas prices from above €100/MWh to around €65/MWh lowered costs and helped to ease some of the pressure on margins for all players.
The market update is an exerpt fromt the monthly report.
Polystyrene (PS) Report
The GC Intelligence™ Polystyrene (PS) Market Prices, Forecasts, and Analysis report is published every month. And the report tracks prices and delivers market insights of the two main grades, GPPS and HIPS.