Europe PS & ABS Markets Turn Lower After Reaching Multi-Year Highs

European PS and ABS markets entered a correction phase in June after several months of strong gains pushed prices to their highest levels in nearly four years. Weak demand, improved product availability, and increasing buyer resistance have started to outweigh cost support, leading to lower transaction levels across the region.

PS prices had been rising steadily since late 2025, with the sharpest increases occurring during the Middle East conflict period as feedstock costs surged. ABS followed a similar path, recording consistent monthly gains through May. However, the upward momentum has now faded, and both markets have shifted into a softer trend.

PS Faces Downward Pressure Despite Higher Styrene Costs

Although the June styrene settlement increased compared with the previous month, suppliers struggled to implement fresh price hikes. Several producers initially announced higher offers, but weak market conditions prevented these increases from gaining acceptance.

Instead, buyers reported stable-to-lower deals, while distributors confirmed price reductions across multiple PS grades. Depending on grade and supplier, declines ranged from moderate adjustments to triple-digit reductions in some cases.

HIPS Records Larger Corrections

Among PS products, HIPS has experienced stronger downward pressure than GPPS. During the period of tight supply, HIPS premiums widened significantly, but easing availability has started to narrow the gap.

The removal of earlier supply constraints has improved product availability across Europe, forcing some sellers to offer larger discounts. However, certain production limitations at a few facilities continue to provide some support to HIPS pricing, preventing a more aggressive decline for now.

ABS Market Also Shifts Lower

The ABS market has also moved into negative territory after four consecutive months of increases. Producers initially attempted to maintain prices, but buyers pushed for discounts, citing weak demand and elevated price levels.

Market participants reported reductions across several ABS grades, while some suppliers adopted different pricing strategies depending on product type. Overall sentiment remains cautious as buyers avoid building inventories.

Demand Remains the Main Concern

Demand conditions continue to be the biggest challenge for both PS and ABS markets. Most processors are purchasing only for immediate production requirements and avoiding long-term commitments.

Trading activity remains limited, while order volumes across downstream sectors are reported to be weak. Seasonal factors are also expected to further reduce consumption during the summer months, particularly as holiday shutdowns approach in several European countries.

Outlook Remains Soft

Market participants expect pressure to continue through the coming weeks, although major price collapses are not widely anticipated in the short term due to relatively firm feedstock costs.

Many players believe a more significant correction would require a notable decline in upstream raw material values. Nevertheless, if demand remains weak during the summer period, additional reductions could emerge later in the third quarter.

While June marks the first meaningful correction after months of gains, PS and ABS prices remain significantly above levels seen before the conflict-driven rally. The market has started to give back some of those gains, but a substantial portion of the earlier premium is still reflected in current prices.

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