Polystyrene

Prices in the US were on the uptrend in January. Demand was strong as buyers were building stocks in anticipation of higher prices in February. Polystyrene (PS) suppliers were keen to target higher prices as margins have been eroded by heightened feedstock styrene and polybutadiene rubber (BR) prices. Some buyers were seen picking up even more resin volumes in February as they expected prices to trend higher in March. Over in Europe, producers targeted higher prices on the back of rising styrene prices, while buyers lamented the price increases and cited difficulty in passing on the higher cost to end-users. Demand for PS is generally weak amid the ongoing eurozone crisis. Demand for PS in Asia remains lacklustre in February as buyers are largely keeping to the sidelines after the Lunar New Year holidays. Concerns over the eurozone debt crisis and weak US economic conditions, which will dampen demand for Asian-made products, prompted PS end-users to adopt a cautious stance. Nonetheless, PS suppliers expect buyers to replenish stocks in the near term as inventories of end-users have dwindled.