EPS Market Intelligence Report

I. Recent Price Trends
- Price Volatility: Around the Labor Day holiday in 2026, the EPS market experienced frequent narrow-range fluctuations, with overall trading sentiment trending downward. As of May 15, the average price for standard EPS material in the East China market stood at RMB 10,500/ton, representing a 6.19% decline compared to pre-holiday levels.
- Specific Quotations: On May 18, the mainstream cash ex-factory prices for standard EPS material from major producers in Jiangsu Province ranged between RMB 10,350–10,650/ton. The low-end price declined by RMB 650/ton (approximately 5.91%) and the high-end price fell by RMB 550/ton (approximately 4.91%), both relative to April 30.

II. Cost-Driven Influences
- Styrene Prices: As the primary raw material for EPS, styrene price movements significantly impact EPS production costs. Following the May Day holiday, the styrene market continued its weak performance—driven by falling crude oil prices, slower-than-expected inventory drawdown at major ports, and sluggish domestic demand—pushing prices below the RMB 10,000/ton threshold. As of May 18, the monthly average price for styrene in Jiangsu Province was RMB 9,655.50/ton, down 5.86% month-on-month.
- Cost Pass-Through Effect: The decline in styrene prices lowered the EPS cost base, exerting notable downward pressure on the EPS market and markedly weakening cost-supportive forces.

III. Supply-Demand Dynamics
- Supply Side:
- During the Labor Day holiday period, several EPS production facilities underwent coordinated load reductions or short-term shutdowns, causing the industry’s overall operating rate to temporarily dip to 31.22%.
- Post-holiday, most facilities resumed operations, lifting the industry-wide operating rate by 22.10 percentage points; supply recovered rapidly, and no significant shortage emerged in the market.
- In late May, no notable decline in EPS operating rates is anticipated; spot supply is expected to remain ample.
- Demand Side:
- Downstream sectors are gradually entering the seasonal off-peak period, with insufficient demand from foam packaging and building insulation applications. Factories exhibit low procurement enthusiasm, adopting a just-in-time purchasing strategy.
- Buyers’ willingness to replenish inventories and increase stockpiles continues to wane; new orders are predominantly small-to-medium-sized, driven primarily by immediate operational needs—offering limited upward price momentum.

IV. Import and Export Situation
- Imports: In April 2026, China’s EPS imports totaled 923.076 metric tons, up 11.31% month-on-month and 60.67% year-on-year.
- Exports: In April 2026, China’s EPS exports reached 47,988 metric tons, rising 25.64% month-on-month and 17.50% year-on-year. Geopolitical factors contributed significantly to the robust export growth.

V. Industry Profitability
- Profit Trend: EPS industry profitability narrowed around the May Day holiday period but remained marginally positive. As of May 15, the average industry profit for May stood at RMB 164.50/ton, a 66.31% decrease compared to the prior month’s average.
- Profit Pressure: Entering late May, EPS profitability is likely to remain under pressure amid strengthening bottom support from raw material costs and deteriorating supply-demand fundamentals—suggesting little prospect for sustained improvement.

Analysis & Assessment

I. Weakening Cost Support
- Styrene prices continue to trend lower, diminishing their supportive effect on EPS costs. In the near term, the cost side is unlikely to provide meaningful price support for EPS.

II. Weak Supply-Demand Balance
- Supply-side operating rates have rebounded, maintaining ample spot availability; meanwhile, downstream demand has entered its seasonal lull, and buyer interest remains subdued—creating a net bearish influence on EPS pricing.

III. Export Growth May Partially Alleviate Domestic Pressure
- Driven by geopolitical developments, EPS export volumes have surged notably—potentially easing domestic supply pressures to some extent—though this is unlikely to deliver substantial upward price momentum overall.

Outlook

I. Price Trend
- EPS market prices are expected to continue declining modestly in the near term, with the pricing center potentially shifting further downward by 0–200 RMB/ton.

II. Industry Profitability
- EPS industry profitability is likely to persist at a marginal level—around RMB 100/ton—but the profit margin may narrow further.

III. Key Market Watchpoints
- Close attention should be paid to developments in styrene pricing, downstream demand dynamics, and export trends—all critical drivers of the EPS market. Additionally, macro-level factors—including geopolitical developments and international oil price volatility—may exert intermittent influence on the EPS market.