European PS, ABS markets hit nearly 5-year lows, no respite in sight for October

In Europe, PS and ABS markets extended their downward trend for the sixth straight month in September, with prices now hovering at around pandemic-era levels. Sentiment remains bearish, as players continue to discuss the October outlook while monitoring expectations for the next styrene contract.

PS prices in West Europe hit lowest since December 2020

In September, European PS producers applied further declines, mainly driven by the lower styrene contract, which settled €46/ton below August. As a result, PS prices fell for the sixth month in a row to their lowest level since December 2020 in West Europe and January 2021 in Italy.



Despite ongoing price cuts, market players were quite disappointed with trading activity in September. Most PS deals were closed with reductions of €45/ton, while some transacted with smaller drops of €30/ton.

Market fundamentals remained weak even after the summer break. In fact, some had anticipated a slight improvement in consumption in September, when restocking typically occurs in Europe. However, the lack of support from end-use sectors weighed on sentiment, with buyers maintaining a cautious stance with their purchases.

Local ABS pressured by weak demand, aggressive imports

The ABS market followed a stable to slightly softer trend in September, with some producers trying to limit further erosion. Most ABS deals were closed either with rollovers or declines of up to €30/ton compared to August. The six-month downtrend has pushed prices to their lowest levels since December 2020, ChemOrbis data revealed.

Demand showed no improvement compared to previous months, with end-use sectors still struggling. Moreover, European ABS producers have been under pressure amid ample local supply and attractive imports from Asia.

Although provisional anti-dumping measures entered into force on August 19, import prices for ABS injection remain attractive. The ongoing weakness in freight markets has offset much of the impact from interim tariffs, keeping import prices competitive.

October expectations skew bearish

As the month draws to a close, players are monitoring commodity markets for clearer direction. Most market participants expect another round of reductions in European styrenics markets, while some do not rule out rollovers in the ABS market.

Spot styrene prices continued to decline throughout the month, mainly due to a lack of solid upstream demand. After dipping below the $1000/ton threshold earlier in the month, spot prices have now slipped under $900/ton FOB following cumulative losses.

Accordingly, the October styrene contract is widely expected to settle lower, with projections ranging between €20/ton and €50/ton decreases.

With the fourth quarter just around the corner, the overall market sentiment remains bleak. Most market participants see no drivers for a recovery in supply-demand dynamics. However, a few sources noted that an unexpected styrene rebound could emerge, given that spot styrene values are now sitting at historic lows.