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Why does EPS Price Fluctuate Frequently?

2019-09-10

The raw materials for EPS include styrene, foaming agents and a range of chemical excipients. Among them, styrene accounts for 90%-95% of the most important raw materials for EPS, so the price level of styrene directly determines the raw material cost of EPS producers to a certain extent.


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China's styrene has long been self-sufficient. Although domestic production capacity has 

increased rapidly with the construction of some new equipment in recent years, downstream 

demand has also increased rapidly. Therefore, the current styrene supply gap in China still 

depends on a large number of imports to make up.


Since EPS is China's largest downstream styrene industry, domestic styrene production 

cannot fully meet the needs of EPS production. Therefore, at present, EPS manufacturers 

in mainland China usually use a combination of imported goods and domestic goods to 

purchase styrene raw materials.


For EPS producers, more than 60% of the SM are imported source , in 2018, the top three 

countries and regions that imported styrene in China were Saudi Arabia, Japan, and Taiwan 

Province of China.


Coming with Two interesting charts: Chart one,Comparison of styrene and EPS price trends


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The blue line is for SM price change, purple line is the trend of EPS.  From June 9, 2019 - September 7, 2019


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Chart two : Styrene market trend  from the year of 2017 to 2019.


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