Europe’s PS and ABS markets brace for further hikes in February

As regional PS and ABS markets conclude January on a marginally stronger note, projections for February are beginning to take shape. The overall outlook is shaped by a combination of rising feedstock costs, firm supplier expectations, and subdued demand.

The cost-push has been the key factor behind bullish February voices. According to ChemOrbis Price Wizard, spot styrene prices on FOB NWE basis surged by 27% since late December amid production losses in the region and previous gains in oil and benzene markets. Spot monomer prices stand at their highest level since mid-September 2024.

Unless February styrene settlement indicates a steep increase, GPPS and HIPS ext. prices are unlikely to see September highs due to lack of additional support from the market. The situation for ABS is not significantly different from that of PS.



Firmer voices prompt order stops from some regional PS sources

January price increases proved effective as strong expectations for February stirred some buying interest in the latter half of the month, despite the ongoing stagnancy in derivative sectors.

Most PS deals were €40/ton higher compared to December, while smaller increases were also seen in a few cases. Although demand for certain applications, especially ice-cream containers, remained calm amid low season, a slightly recovery in the second half of January has been noted.

Suppliers are preparing for further hikes in February, with expectations of increases of around €50/ton or higher, depending on the styrene contract level and producers’ margin enhancement targets amid elevated production costs. Rising spot styrene values, coupled with sufficient supply, have reinforced the bullish sentiment heading into February. Uncompetitive import offers have also fuelled expectations that price increases for PS could exceed the anticipated rise in styrene costs. Notably, some suppliers have reported closing order books to prevent pre-buying activity, further underscoring firm expectations.

A source from a regional producer commented, “January has proven to be a relatively strong month for sales, with a notable increase in requests since last week. It appears that buyers are seeking to hedge against potential future price hikes. We expect to finalize styrenics sales in the coming days. Spot styrene has experienced a significant rise, and it is anticipated that both styrene and PS could see price increases of approximately €50/ton.”

ABS hikes overshadowed by unfavourable fundamentals

The ABS market also witnessed increases in January, but the overall demand remained weak. Deals were mainly closed with hikes of €25/ton despite larger hikes of up to €45/ton remaining in place, while sales volumes were not satisfactory considering the ongoing stagnancy in the automotive, household appliances and electronics sectors. Supplies remained ample, with buyers sitting on high stocks. Hence, they exhibited a cautious buying behaviour.

Nonetheless, suppliers are focused on February, when they expect additional price hikes driven by rising feedstock costs, including a €45/ton hike in the February butadiene settlement.

AD probe on ABS creates uncertainty

The uncertainty is here to stay though due to an ongoing antidumping investigation on ABS imports from South Korea and Taiwan.

In January-November period, South Korea emerged as the leading supplier to the European Union, commanding a dominant 70% market share, followed by Taiwan with a 13% share. For detailed figures on tonnage and more, visit ChemOrbis Stats Wizard Pro.

If imposed, these anti-dumping duties would help European producers to reclaim the dominant position, alleviating the high-cost burden. Still, a lack of clarity at the regulatory level prevents buyers from deciding whether to shift exclusively to European material or not.

Adding another layer to the uncertainties, potential policy changes in the US following Trump’s inauguration could also affect trade as the US is a significant partner for the union. Trump’s mention of the potential imposition of tariffs on EU goods could prompt retaliatory tariffs on US imports to the EU in response.

That is to say, a slight increase in the ABS markets is possible, but it would likely be constrained and could struggle to maintain momentum without a shift in these underlying factors.