The relative importance of expandable polystyrene (EPS) in insulation and packaging varies by region.
Packaging for export industries is especially significant in Asia, while insulation takes centre stage in North America and Europe.
In Europe, a very cold spell has brought construction to a halt. Paradoxically, the freezing weather has reminded people of the benefits of insulation and suppliers report good downstream order volumes into midyear.
EPS suppliers in Asia were expecting buying interest to emerge in late February as end-users usually replenish stocks ahead of the Chinese manufacturing-for-exports season, which starts in April. Also, with warmer weather in the second quarter, demand for EPS is expected to increase from the construction sector in eastern and northern China.
Feedstock costs continue to push US EPS prices higher. However, access to lower-priced material from Asia will continue to play a factor in US prices in the future.
A new free-trade agreement between the US and South Korea is expected to increase South Korean exports to the US. The construction market remains the key factor driving demand in the US.