[PS Weekly Review] Demand Stagnation Hinders Market Transactions

1. Market Review of the Week: Insufficient Demand and Sluggish Transactions

This week, the domestic PS market showed differentiated trends between general-purpose polystyrene (GPPS) and high-impact polystyrene (HIPS), with overall fluctuations within a narrow range. The average price of GPPS in East China was 7,828 yuan/ton, down 42 yuan/ton from the previous period, a decrease of 0.53% week-on-week; the average price of HIPS in East China was 8,533 yuan/ton, up 2 yuan/ton from the previous period, a week-on-week increase of 0.02%.

2. Driving Factors Analysis: Cost Support Remains at the Bottom, Market Stalemate at a Low Level

This week, the domestic PS market shows differentiated trends in the benzene transformation, with overall narrow range fluctuations. During the week, the raw material styrene underwent fluctuations and adjustments, providing insufficient unilateral guidance for the PS cost side, but there is still bottom support, and PS holders have limited willingness to lower prices. From the perspective of supply and demand, the PS industry operating load has further increased, with spot supply continuing to rise. Some buyers are making moderate purchases based on rigid demand, while downstream buyers have limited willingness to buy in bulk, resulting in a still weak supply-demand structure and a lack of transaction momentum in the market.

3. Next Market Outlook: Costs Expected to Decrease & Supply-Demand Pressure May Keep PS Market in a Weak Stalemate

The domestic PS market is likely to remain weak and stagnant next week. The general GPPS is expected to run in the range of 7,750-7,900 yuan/ton, with the average price estimated at 7,800 yuan/ton; the general HIPS is expected to run in the range of 8,300-8,700 yuan/ton, with the average price estimated at 8,500 yuan/ton. On the cost side, the styrene market is likely to operate weakly, and the cost-side guidance for PS is expected to be bearish. On the supply and demand side, the production lines restarted this week are running steadily, and the domestic PS supply is expected to continue to increase next week, maintaining a relatively loose spot supply situation. However, during the traditional off-season for demand, downstream procurement remains sluggish. In summary, while there is still some support from the cost side, the supply-demand structure remains weak, and the PS market is likely to remain weak and stalemated.