Turkey EPS Closes June Weak, Lower Styrene Signals Further Declines for July

Turkey's EPS market remained under pressure throughout June, extending the correction that began in May after several months of steady gains. Lower styrene costs, easing geopolitical tensions in the Middle East, and cautious buying activity continued to weigh on prices, while expectations for July remain firmly bearish.

Domestic white EPS prices declined sharply during June, with regular grades assessed at $1,920-1,960/ton and non-flame-retardant grades at $1,950-1,990/ton, both on an ex-warehouse Turkey basis. Black and grey EPS grades also recorded notable reductions, with offers generally reported in the $2,300-2,400/ton range.

Although demand showed some seasonal improvement at the beginning of the month, buying momentum faded quickly as crude oil prices retreated and feedstock costs weakened. Most processors shifted back to hand-to-mouth purchasing, preferring to consume existing inventories instead of placing fresh orders amid ongoing liquidity constraints and expectations of lower prices.

The sharp decline in styrene monomer further added to market pressure. Spot styrene prices in Europe fell significantly during June, erasing most of the gains recorded during the earlier geopolitical rally. The correction in feedstock costs has reduced production expenses for EPS manufacturers and strengthened expectations for additional price cuts in the coming weeks.

Supply conditions have also improved, supported by increasing availability of imported material and expectations that European styrene production will normalize following scheduled plant restarts. Combined with weak downstream demand and the approaching summer holiday season, these factors continue to create a bearish outlook for the EPS market.

Market participants expect July to bring another round of price reductions as lower styrene settlements, soft export demand, and subdued domestic consumption continue to weigh on the market. Unless demand improves unexpectedly, EPS prices are likely to remain under pressure in the near term.

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