Polystyrene Outlook

North American Polystyrene markets could see a small increase in January contracts based solely on the 7.0 cents/gallon increase in January benzene contracts and higher styrene costs. No significant increase in demand is expected, according to Terry Bourgeois, Senior Editor for Townsend’s Plastic Market Monthly.

One major North American producer of EPS – Epsilyte – has announced a price increase of 4.0 cpp for all grades of expanded polystyrene, effective January 1, 2026, citing increasing costs of delivered styrene. No other announcements for other grades of PS have emerged.

It is generally agreed that demand for PS will remain mostly flat in 2026 as compared to 2025, with the overall outlook cautious. Sources say while mortgage rates are not expected to drop below 6% in 2026, any rebound in housing will take longer than anticipated, especially with consumers being cautious with discretionary spending, which includes such things home improvement projects, large purchases such as appliances, and eating out. Most economists think it will be the latter half of 2026 before any rebound in the economy takes place.

Operating rates are expected to continue in the mid-50s for the near term amid weak demand and ample supply conditions. No additional domestic capacity is expected, and pricing fluctuations will be dependent mostly on feedstocks benzene and styrene, and ethylene to a lesser degree.

In production news, Westlake announced in late December it was closing it 260,000 mt/y styrene unit in Lake Charles, Louisiana, along with other petchem facilities. Westlake is the smallest styrene producer in North America, representing about 6% of total capacity, and sources say the plant’s closure is not likely to rebalance the US market, which is expected to remain oversupplied.

‍