European PS reverses course, ABS stabilizes as producers eye Jan hikes

Following eight consecutive months of declines that dragged prices to their lowest levels since the pandemic era, the European PS market has finally reversed course in December. The change of direction was driven by the €21/ton increase in the styrene contract, although gains remained limited given persistently weak demand and the dampening impact of approaching year-end.

Meanwhile, the ABS market also put an end to its prolonged downtrend that was in place since early Q2, though without posting a clear rebound. Prices mostly rolled over, with limited buying interest preventing producers from passing on firmer offers.

With the year drawing to a close, market participants have shifted their attention to January, anticipating further hike attempts across both markets, supported by producers’ profitability concerns and expectations of firmer costs.

Initial hikes fail to pass on deals in PS, ABS markets

European PS producers initially sought price increases exceeding the styrene monomer gain in an effort to repair their squeezed margins. Nevertheless, deals were mostly concluded with hikes of €20/ton, in line with the styrene contract increase, while rollovers were also reported in some cases due to lackluster buying interest.

ABS suppliers also started the month with slightly firmer prices, but poor market conditions prevented a reversal of the trend and resulted in a broadly stable trend. Meanwhile, a few distributors opted to clear their stocks through selective monthly reductions, if necessary, in order to reduce their inventories before the year-end.

Market fundamentals remain unsupportive

Demand remained subdued across the region, with buyers limiting purchases to immediate needs and avoiding pre-buying activities despite producers’ firmer intentions. Weak downstream performance, coupled with efforts to keep inventories at minimum levels, further dampened market activities. Many buyers also rule out a meaningful rebound in the near term, reinforcing a wait-and-see stance.

On the supply side, no major constraints were reported in December. Yet, players continued to point to the presence of competitively priced imports, particularly for ABS, as a key pressure point.

Meanwhile, Trinseo has recently confirmed its decision to shut its PS facility in Schkopau, Germany, and consolidate production at its Tessenderlo site in Belgium as part of a broader restructuring plan.

January outlook: Firmer cost support meets weak demand

Regional producers are expected to pursue further price hikes in early 2026, citing multi-year low price levels and ongoing margin compression. Meanwhile, slightly firmer expectations for the next styrene settlement support these firmer intentions.

That said, demand is not forecast to improve significantly as January will be another short month in terms of working days, while the awaited arrival of import volumes is likely to keep markets under pressure. As a result, some players foresee potential revisions to initial hike targets or even stability, depending on the magnitude of any cost increase.