Asian PS Prices Rise Further as Higher Styrene and Crude Lift Costs

Asian PS markets extended their upward trend this week, with prices continuing to rise across China and Southeast Asia despite limited support from underlying supply-demand fundamentals. The latest gains were driven mainly by a renewed surge in styrene and elevated crude oil prices, increasing production costs and encouraging sellers to raise their offers.

However, buying activity remained largely focused on immediate requirements. As a result, the continuation of the rally is becoming increasingly dependent on feedstock costs rather than a substantial recovery in downstream demand.

PS Prices Reach Multi-Month Highs

China’s domestic PS market recorded another round of increases, with both GPPS injection and HIPS injection prices rising by CNY 200–400/ton ($30–60/ton) from the previous week.

Weekly average prices for both grades moved above their early- to mid-June levels, marking a third consecutive week of gains.

Import prices in China also followed the upward trend. GPPS injection increased by $20–50/ton, while HIPS injection gained $20–70/ton. Weekly average import prices for both grades moved closer to their mid-June peaks.

Southeast Asian PS markets also remained firm. Import prices increased by $10–40/ton on the week, extending the regional rally to a fourth consecutive week. Weekly average prices for both GPPS and HIPS reached their highest levels since the first two weeks of June.

Styrene Surge Strengthens Cost Pressure

The sharp increase in feedstock costs has been the main catalyst behind the latest price movement.

Brent crude futures increased by around 4% during the week, settling at $95.52/bbl on Thursday. Prices moved below $95/bbl during Friday’s intraday trading but remained close to this elevated level.

More importantly for PS producers, CFR China spot styrene increased by $105/ton from the previous week, resuming its upward movement after a one-week correction. The latest increase pushed styrene to its highest level since late April and close to the levels seen during the second week of the earlier war-driven rally.

A Chinese producer source said the company had suspended offers during the week because energy and feedstock costs had risen sharply, while market fundamentals did not justify such a rapid increase in PS prices.

Demand Remains Mostly Need-Based

Despite the strong price gains, downstream demand has not shown a corresponding improvement.

A Chinese trader said there had been no significant change in demand from the previous week, with buyers continuing to purchase mainly according to immediate requirements. However, strong cost support is expected to keep the domestic market firm in the near term.

A Taiwanese producer source also highlighted weak demand and persistent oversupply. The seasonal improvement normally expected ahead of China’s Double 11 shopping festival and the Christmas season has yet to become visible.

The source added that high inflation, weaker consumer purchasing power and the growing use of recycled materials are further limiting demand for virgin PS.

SEA Buyers Resist Rapid Price Increases

Southeast Asian buyers have also shown limited willingness to follow the sharp price increases, particularly when existing inventories are sufficient.

A Vietnamese converter said prices were rising faster than expected and that the company preferred to remain on the sidelines because it still had enough stock. Weak demand for finished products was also cited as a reason for delaying purchases.

Another Vietnamese converter similarly noted that prices had increased significantly during the week, but existing inventories made it preferable to postpone new purchases.

A local trader confirmed that buyers with low stocks may still return to the market to cover immediate needs, while most other participants are maintaining a wait-and-see approach.

Overall, Asian PS prices continue to move higher on strong feedstock cost support, but weak demand, ample supply and cautious buying remain key obstacles to a sustained market recovery.

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