European PS and ABS Prices Slide as Weak Demand Reverses August Recovery

Europe’s PS and ABS markets moved lower in September after briefly gaining ground in August on higher costs. The €140/ton decline in the styrene contract, combined with persistently weak demand, pushed prices down and prompted most suppliers to announce sizeable reductions. The extent of the cuts varied depending on previous price levels and producers’ efforts to protect margins.

Some buyers returned after the summer holidays to replenish low inventories, but the improvement in purchasing activity was inconsistent and insufficient to provide broad market support. Meanwhile, higher crude oil, spot styrene and benzene prices have significantly changed the cost outlook for October, raising questions over whether the September decline can continue.

PS Prices Closely Track Styrene Movement

PS suppliers entered September with reductions generally ranging from €100–150/ton. Many sellers passed through the full €140/ton decrease in styrene, as weak demand left limited scope to rebuild margins. Some suppliers implemented smaller reductions, while deeper cuts were reported where previous prices had remained above prevailing market levels.

Most buyers initially received offers €100–140/ton below August levels. Some covered their requirements quickly due to higher consumption or low stocks, while others remained cautious because current prices were still viewed as too high for inventory building.

ABS Declines Despite Higher Butadiene

ABS prices also decreased in September, although the €50/ton increase in the butadiene contract provided partial support against the lower styrene cost. Most reductions were reported at approximately €60–100/ton, with some suppliers limiting their concessions to protect already compressed margins.

Larger decreases appeared selectively as certain producers attempted to bring their offers closer to market levels or stimulate sales while holding high inventories. Competitive imports, particularly from China, added further pressure to the European ABS market.

Buying Activity Improves, but Recovery Remains Limited

Several suppliers reported receiving more inquiries than during the summer as buyers with low stocks returned following the September price reductions. Converters with immediate requirements also covered their regular needs.

However, the increase in inquiries has not translated into a meaningful recovery in demand. Some suppliers said buying interest had strengthened during the previous week but subsequently slowed. Many converters remain cautious because of volatile end-product demand and uncertainty over the coming months.

Supply is generally adequate, although some market participants reported potential delivery delays from a regional producer during September. These concerns encouraged a few buyers to secure material sooner but did not create broader supply pressure.

Further September Discounts May Be Limited

For the remainder of September, PS transactions are expected to remain broadly aligned with the €140/ton decline in styrene. Producers that initially offered smaller reductions may face pressure to lower prices further if order intake remains weak. However, squeezed margins are expected to restrict discounts beyond the cost-related adjustment.

In ABS, mainstream reductions are expected to remain mostly around €80–100/ton. Suppliers that have already reflected the full cost decline are likely to resist additional concessions, while those that initially offered smaller cuts could face pressure to revise their prices if demand remains subdued.

According to the ChemOrbis Price Index, weekly average PS prices are currently €10/ton below their late-July levels, while ABS prices are approximately €50/ton lower. The September declines have therefore erased the gains recorded in August, taking both markets to their lowest levels since early March.

Higher Upstream Costs Could Support October Prices

The upstream cost environment has shifted significantly since September contracts were settled. Brent crude rose above $107/bbl, while spot styrene reached around $1,600/ton FOB NWE, its highest level since mid-May. Spot benzene also increased by approximately $175/ton over the past two weeks, reaching around $1,230/ton CIF NWE.

If these higher costs persist, they could interrupt the downward trend in October and encourage producers to seek rollovers or renewed increases. At the very least, stronger upstream costs are likely to reinforce sellers’ resistance to further price reductions.

However, continued weak demand could limit producers’ ability to fully pass higher costs through to buyers. Any potential firming in October is therefore likely to remain primarily cost-driven rather than supported by stronger demand.

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