Turkey EPS Prices Rise Further as October Cost Pressure Builds

Turkey’s EPS market recorded another round of price increases in September, extending the upward trend that began in August. Rising production costs remained the main driver, while firm styrene prices across Europe and Asia have strengthened expectations for additional increases in October.

Despite significant fluctuations in Brent crude, European spot styrene prices have remained close to their highest levels in roughly two and a half years, continuing to provide strong cost support for EPS producers.

September EPS Prices Move Higher

Domestic white EPS prices increased by $100/ton during September. Regular-grade material was assessed at $1900-1950/ton, while non-flammable grade stood at $1930-1980/ton.

White EPS – Regular Grade

September price: $1900-1950/ton

Monthly change: +$100/ton

Basis: Ex-warehouse Turkey equivalent, cash, excluding VAT

White EPS – Non-Flammable Grade

September price: $1930-1980/ton

Monthly change: +$100/ton

Basis: Ex-warehouse Turkey equivalent, cash, excluding VAT

Local black and gray EPS offers also moved higher during the month.

Black/Gray EPS

September price: $2250-2300/ton

Monthly change: +$50-100/ton

Basis: FD Turkey

Styrene Provides Strong Cost Support

Spot styrene prices have increased by almost $150/ton on an FOB NWE basis compared with last month, providing substantial cost support to EPS suppliers.

The overall increase from the June low has approached $500/ton, highlighting the strength of the upstream recovery.

Market participants are expected to closely monitor crude oil prices and their impact on feedstock costs in the coming weeks. If styrene prices remain elevated, EPS producers are likely to seek further increases for October. However, the ability to achieve those hikes will largely depend on downstream demand.

At the time of writing, some European market participants were expecting October styrene contract prices to increase by as much as €200/ton.

October Hikes Depend on Demand

An EPS buyer said current spot styrene levels could encourage domestic suppliers to seek increases of $100/ton or more in October. However, the buyer noted that the size of any achievable increase would depend on how long the upstream price rally continues and whether higher costs can be passed through to customers.

The buyer also highlighted Q4 downstream order strength as an important factor for the market.

A source at a domestic EPS producer said September demand had been healthy and that rising costs were pointing toward further price increases in October. However, ongoing liquidity difficulties and the approaching winter low season could weaken buying interest as November draws closer.

Overall, Turkey’s EPS market enters October with continued cost pressure from styrene. Further price increases remain possible if upstream values stay firm, although demand conditions will determine how much of the additional cost suppliers can successfully pass on.

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