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[PS Monthly Review] Cost Support Combined With Tightening Supply Drives February PS Market to Trade Firm Amid Volatility

Plastmatch 2026-02-28 17:29:02

In February 2026, China's polystyrene (PS) market experienced a slight pullback from its high levels, followed by a period of steady, modest increases, supported by strong cost-side fundamentals and a tight supply-demand balance, resulting in an overall robust market performance.

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Strong cost-side drive: The strong trend of crude oil, coupled with low port inventory of styrene, has significantly supported PS prices through rising costs.

Industry output declined significantly: Affected by the Spring Festival holiday and corporate profitability, the PS industry experienced a substantial production cut in February, leading to tightened supply.

Overall inventory pressure remains manageable: PS finished goods inventory saw a slight increase in February, but inventory levels remain within a reasonable range, exerting no significant downward pressure on prices.

II. Market Review of This Month

The domestic PS market in FebruarySmall upward fluctuation after a high-level pullbackThe operating trend. As of the end of February, the average price of material 525 in East China was 7,882 yuan/ton, an increase of 310 yuan/ton from the previous month, representing a 4.1% rise.

In terms of cost, the strengthening of crude oil trends, coupled with generally low port inventories of styrene, has significantly pushed up the cost end of PS.

In terms of supply and demand, affected by the Spring Festival holiday and enterprise profit factors, industry supply has significantly decreased, and inventory pressure remains generally manageable. Under the combined effect of cost support and tight supply-demand, the market rose sharply, and although there was a slight pullback, it has generally maintained an upward trend in a fluctuating pattern.

Key data points:

China's PS production in February is expected to be 338,000 tonnes, down by 79,000 tonnes or 18.9% month-over-month, and flat year-over-year.

Cumulative output from January to February was 755,000 tons, up 1.8% year-on-year.

The average inventory of PS finished products in China in February was 86,000 tons, an increase of 0.2 thousand tons from the previous month, with an increase of 2.4%.

III. Market Outlook for Next Month

The PS market is expected to remain stable in March 2026.Slightly bullish consolidationTrend

From a cost perspective, domestic benzene ethylene supply growth remains limited. Downstream demand largely returned to normal in March, providing near-term support from both cost and supply-demand fundamentals. Although forward-month expectations may weaken somewhat, the overall bearish impact is limited.

From the perspective of supply and demand, PS supply is expected to rebound in March, but demand recovery in the downstream home appliance sector is relatively optimistic, and market inventory is expected to gradually decrease; overall, supply-demand pressure remains limited.

Overall, the PS market in March lacks significant bearish factors and is expected to remain strong with range-bound fluctuations.

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[PS Monthly Review] Cost Support Combined With Tightening Supply Drives February PS Market to Trade Firm Amid Volatility

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