Can Firmer Feedstock Costs Slow the Decline in Turkey’s Styrenics Market?

Turkey’s styrenics market continued to weaken through early July as PS and ABS prices remained under pressure from sluggish demand, easing production costs, and limited buying activity. Although crude oil and spot styrene prices recovered modestly following renewed geopolitical tensions in the Middle East, the improvement in feedstock values has not been enough to change market sentiment, with weak downstream demand and tight liquidity continuing to dominate.

Import suppliers lowered PS and ABS offers again, while domestic PS producers introduced significant July price reductions. Most buyers continued purchasing only the volumes needed for immediate production, keeping overall trading activity subdued.

South Korean PS and ABS Continue to Decline

South Korean PS prices extended their downward trend, continuing the correction that began in early May. Prices have now fallen by nearly $400/ton from their conflict-driven highs, although they still remain above pre-conflict levels.

ABS prices from South Korea also moved lower, with natural injection grades dropping below $1,600/ton CIF Turkey at the lower end of the market. Since reaching their peak earlier this year, ABS prices have declined by approximately $1,400/ton, leaving only a small premium over pre-conflict levels despite elevated freight costs from Northeast Asia.

Market participants agreed that the recent rebound in crude oil and styrene prices has not changed purchasing behavior. Lower styrene and butadiene production costs in recent weeks, combined with weak demand from downstream industries, continue to outweigh any support from higher energy prices. Some ABS producers were also reported to be operating at reduced rates due to limited demand.

European Suppliers Cut Prices Further

European PS suppliers entered July with substantial price reductions after lower styrene and butadiene contract settlements reduced production costs. Although spot styrene prices have recently recovered, buyers showed little interest in rebuilding inventories, preferring to wait as they expect demand to remain weak during the summer holiday period.

The European ABS market followed a similar trend, with prices falling by as much as €300/ton as sellers competed for limited demand.

Domestic Market Follows Import Trend

Lower import replacement costs continued to influence Turkey’s domestic PS and ABS markets, leading local suppliers to introduce sizeable July price cuts.

Domestic PS prices have now declined by more than $400/ton from the highs recorded in early April, although they remain above pre-conflict levels. The EPS market also recorded fresh reductions exceeding $200/ton, while market participants noted that the recent improvement in styrene prices may have prevented even steeper declines.

In the ABS market, prompt material was available from around $1,700/ton (excluding VAT), with average prices dropping by roughly $200/ton compared with the previous week. Some buyers were also reported to be bidding at even lower levels.

Outlook

Market participants are closely watching whether the recent recovery in crude oil and spot styrene prices can slow the ongoing decline in Turkey's styrenics market. While higher energy prices have improved feedstock costs, most players believe this alone will not be enough to stabilize the market.

Weak downstream demand, cash flow constraints, reduced operating rates among processors, and cautious purchasing continue to dominate market conditions. As a result, a meaningful recovery is expected to depend on stronger demand rather than modest improvements in feedstock prices.

Some traders also believe that the narrowing gap between Turkey's domestic prices and Asian import offers could help slow the pace of price declines if the upstream market continues to strengthen in the coming weeks.

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