​PS Weekly Market Analysis – Implications for Flame Retardant Demand

PS Weekly Market Analysis – Implications for Flame Retardant Demand

Date: August 11, 2025
Source: YINSU Flame Retardant Company

1. Overview of Current PS Market

This week, the polystyrene (PS) market faced mixed signals. From the cost side, styrene prices fell to ¥7,335/ton (-¥70), limiting upward cost pressure for PS producers. Supply is gradually recovering as previously idled lines resume production, with the PS industry operating rate increasing to 55% (+1.7%). Finished product inventories rose slightly to 85,000 tons (+1,000 tons), reflecting a moderate accumulation due to slower downstream consumption.

Demand remains soft. August is traditionally an off-season, and orders from major consuming industries—household appliances and automotive—were weaker than last year. In the home appliance sector, refrigerator production fell 9.5%, washing machines 3.0%, and air conditioners dropped sharply by 109.7 thousand units compared to the previous month. This slowdown directly reduces demand for flame-retardant-grade PS.

1. Short-Term Market Forecast (Mid-August)

• PS Price Trend: Weak consolidation is expected. GPPS prices are forecast between ¥7,800–9,500/ton, HIPS between ¥8,400–9,700/ton.

• Supply Pressure: Ongoing plant restarts will gradually increase market supply.

• Demand Outlook: Terminal sectors continue to buy on a need-only basis, lacking large-scale replenishment orders.

• Impact on Flame Retardant Demand: Weak appliance and automotive orders will limit incremental demand for flame retardants. Most orders will remain in small, replenishment quantities.

2. Medium to Long-Term Forecast (Late August–September)

• PS Price Trend: Modest upward correction is anticipated, with GPPS at ¥7,900–9,550/ton, HIPS at ¥8,500–9,750/ton.

• Demand Recovery: The "Golden September, Silver October" peak season should gradually lift PS demand as downstream restocking begins, especially in appliances and automotive production.

• Impact on Flame Retardant Demand: Increased production of flame-retardant-grade PS—driven by seasonal demand in refrigerators, air conditioners, and automotive components—will likely trigger larger flame retardant procurement volumes.

• Supply Support: Alongside restarts, new production lines are scheduled to begin operations, further expanding PS availability.

3. Key Market Drivers Affecting Flame Retardant Sales

Cost and Profit Margins

• GPPS theoretical profit rose by ¥40/ton; HIPS profit increased by ¥57/ton, both returning to positive territory.

• Improved profitability allows PS producers to invest in performance upgrades—transitioning from standard PS to flame-retardant grades in compliance with stricter safety standards.

Downstream Sector Performance

• Household Appliances: August’s combined output of air conditioners, refrigerators, and washing machines totaled 26.97 million units, down 4.9% year-on-year. The decline in appliance production continues to suppress short-term flame retardant demand.

• Automotive: Passenger car production increased by 128,000 units and commercial vehicles by 18,000 units in June, though new energy vehicle production fell slightly (-0.2k units). A rebound in EV output could spur demand for halogen-free and high-efficiency flame retardants.

PS Supply Side

• Operating rates rose to 55% as several key producers, including Xinghui and Zhanjiang Xinzhongmei, restarted lines.

• The slight inventory increase suggests market absorption remains healthy, leaving room for demand expansion during peak season.

4. Strategic Recommendations for Flame Retardant Producers

Short-Term:

• Maintain moderate inventory levels and prioritize supply to key clients.

• Closely monitor PS producers’ restocking cycles to align production with actual demand.

Medium to Long-Term:

• Prepare raw materials ahead of the September peak season to ensure timely delivery.

• Strengthen promotion of halogen-free and high-performance flame retardants, especially targeting applications in home appliances and automotive interiors where safety standards are tightening.

Risk Factors:

• Potential volatility in styrene prices due to geopolitical tensions.

  Weaker-than-expected seasonal demand in terminal markets could delay PS and flame retardant procurement.

YINSU Flame Retardant Manufacturing Company will continue to monitor PS market trends and adjust supply strategies to ensure timely, high-quality flame retardant solutions for our partners.