Why does EPS Price Fluctuate Frequently?
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
The blue line is for SM price change, purple line is the trend of EPS. From June 9, 2019 - September 7, 2019
Chart two : Styrene market trend from the year of 2017 to 2019.