The global Expandable Polystyrene market moved higher during Q2 2026, with most major regions recording noticeable increases. The market was strongly influenced by geopolitical tensions involving the US and Iran and the disruption around the Strait of Hormuz. These developments affected the movement of crude oil, styrene, and other important raw materials used in EPS production.

During April and May, crude oil values moved sharply higher. This increased the cost of producing and transporting petrochemical materials in many parts of the world. Delays in feedstock shipments also created additional pressure, particularly in markets that depend on imported raw materials. Higher freight costs made the situation more difficult for buyers because even when material was available, bringing it into the country became more expensive.

The construction and insulation sectors remained important sources of demand during the quarter. Packaging applications also continued to consume EPS at a steady rate. This steady requirement gave producers and suppliers enough support to maintain higher offers even when buyers were already facing increased costs.

The market became somewhat calmer toward the end of Q2. After the mid-June US-Iran ceasefire, Chinese export offers and freight expenses started to ease. Softer styrene values also reduced some of the production cost pressure. As a result, several markets recorded corrections during June after the strong increases seen earlier in the quarter.

The overall EPS price trend showed a clear difference between the first part and the final part of Q2. April and May were dominated by rising feedstock costs, tight logistics, and strong supply concerns, while June brought some relief as shipping conditions improved and raw material costs became less supportive.

Germany Market

Germany recorded a 43% increase in EPS values during Q2 2026. The market faced pressure from higher feedstock costs and limited raw material inflows. Geopolitical tensions and difficulties around the Strait of Hormuz affected international trade routes, making it more difficult for suppliers to secure material at earlier cost levels.

Demand from construction and insulation remained strong. These sectors are important users of EPS, particularly for applications where lightweight insulation and protective properties are required. Strong demand helped suppliers hold onto higher offers despite the rising costs faced by buyers.

Energy and operating expenses also remained elevated. With limited raw material availability and higher production costs, market participants had to manage a relatively tight supply situation.

In June, German EPS values corrected by 2%. The improvement followed the easing of geopolitical pressure and better shipping conditions. Softer styrene feedstock values also reduced some of the earlier cost support. Chinese offers and freight costs started moving lower, giving European buyers somewhat better purchasing conditions.

Netherlands Market

The Netherlands experienced a 42% increase in Q2. Similar to Germany, the market was affected by restricted feedstock availability and higher production costs.

The construction and packaging industries continued to provide steady demand. Buyers still needed regular material, which helped prevent a significant drop in supplier quotations during the stronger part of the quarter.

Logistics were another important factor. Disruptions in raw material movement and higher freight costs made it harder to maintain normal supply patterns. Because of this, market participants remained cautious about availability and future replacement costs.

June brought a 2% correction in the Netherlands. Lower styrene values and improved shipping conditions reduced some of the pressure seen earlier. The easing of Chinese offers and freight costs also helped create a more balanced market environment.

UAE Market

The UAE market recorded a 22% increase during Q2. Imported EPS from China became more expensive as regional trade routes faced disruption and freight costs increased.

The UAE relies considerably on imported material, so changes in Chinese export offers can have a direct effect on local replacement costs. During the quarter, packaging and construction demand remained stable and provided reasonable support to the market.

Logistics challenges were also important. Higher freight rates and uncertainty around shipping routes increased the landed cost of imported material. As a result, buyers had to pay more even when their underlying demand had not changed significantly.

In June, UAE values declined by 5%. Chinese import costs began to normalize as shipping conditions improved and styrene values became softer. This gave buyers some relief after the strong increases recorded earlier in Q2.

China Market

China recorded a 16% increase in EPS export values during Q2. The increase was less aggressive than in several European markets because domestic demand remained moderate.

Feedstock supply was affected by geopolitical developments and problems with international trade routes. Higher raw material costs increased production expenses and influenced export quotations.

At the same time, domestic operating rates remained relatively consistent, helping keep physical availability more stable. This prevented the market from becoming as tight as some other regions.

Export activity was still affected by global logistics problems. Suppliers had to consider higher transportation costs and uncertain delivery schedules when making offers to overseas customers.

The market corrected by 9% in June. Softer styrene values and better shipping conditions reduced production and export cost pressure. Buyers also had more room to negotiate as the market became less concerned about immediate supply shortages.

Saudi Arabia Market

Saudi Arabia recorded an 18% increase in Q2. The country's market was influenced by higher import costs and disruption to regional supply chains.

Because Saudi Arabia depends on Asian imports for some EPS requirements, changes in Chinese offers and freight rates had a noticeable impact on local purchasing costs. Construction and insulation demand remained steady, helping maintain market support.

The supply situation was moderately tight during much of the quarter. Logistics problems made imports more difficult and added to the cost of securing material.

In June, values declined by 4%. Chinese import costs began to move closer to normal levels as shipping conditions improved. Lower styrene costs also reduced the pressure on suppliers, allowing import prices to soften.

Thailand Market

Thailand recorded a 16% increase during Q2. The market was supported by stable demand from packaging and construction users.

Imported material became more expensive as international freight costs increased and trade routes were disrupted. Buyers continued regular procurement, which helped keep the market firm even though the overall supply situation remained reasonably balanced.

Chinese suppliers remained important to the Thai market. Any change in their export offers therefore had a direct effect on the cost of imported EPS.

In June, Thailand recorded a 9% correction. Lower Chinese offers, reduced styrene costs, and better shipping conditions helped bring import costs down. Buyers also became more careful about procurement as the market started showing signs of stabilization.

India Market

India recorded the strongest increase among the markets covered in the source, with EPS values rising by 54% during Q2 2026.

The Indian market was strongly affected by higher feedstock costs and restricted import availability. Because the domestic industry depends on imported raw materials, disruptions in international supply chains quickly translated into higher production and replacement costs.

Demand from construction, insulation, and packaging remained strong. This gave sellers additional support when deciding their selling levels. Buying activity stayed reasonably healthy, while limited inventory availability added to the feeling of tightness in the market.

The combination of firm demand, higher raw material costs, and supply uncertainty created a strong upward movement during most of Q2.

The situation changed in June. Indian EPS values declined by 9% as styrene costs became softer and shipping conditions improved. Lower Chinese offers also helped reduce import-related pressure. Buyers became more cautious and were less willing to build large inventories at the earlier high levels.

What the Q2 Movement Means for Buyers

The Q2 2026 EPS market shows how strongly a material can react when energy costs, raw materials, shipping, and geopolitical events move in the same direction. The increases across the major markets were not caused by demand alone. Higher production costs and difficulties in moving feedstocks played an equally important role.

For buyers, one of the main lessons from the quarter was the importance of monitoring styrene and crude oil alongside local market conditions. A change in feedstock costs can quickly affect producer offers, while higher freight rates can make imported material more expensive even when production costs remain unchanged.

The situation in June also showed why procurement decisions can become difficult during a volatile market. When prices are rising quickly, buyers may try to secure material early to avoid paying even more later. But when feedstock costs begin to fall, holding large inventories can become risky because replacement values may decline.

The movement of EPS values across Germany, the Netherlands, the UAE, China, Saudi Arabia, Thailand, and India also shows that the same global event does not affect every market equally. Import dependence, local demand, freight costs, operating rates, and inventory levels can all change the final market outcome.

Outlook for the EPS Market

The second half of Q2 already showed signs of a more balanced market. The easing of geopolitical tensions, improving shipping conditions, and lower styrene costs reduced some of the pressure that had pushed values higher during April and May.

However, the market can remain sensitive to changes in crude oil and petrochemical feedstock costs. Any new disruption to major shipping routes could once again increase freight expenses and create concerns about raw material availability.

Demand from construction, insulation, and packaging will also remain important. If these industries continue purchasing at a steady pace, they can provide a basic level of support to the market. On the other hand, weaker downstream activity and comfortable inventories could make it harder for suppliers to maintain the higher values seen earlier in Q2.

Overall, the Q2 2026 market was a period of sharp movement followed by early signs of correction. The first two months were dominated by supply concerns and higher costs, while June brought some relief. Going forward, the balance between feedstock costs, international logistics, import availability, and downstream demand will remain important in determining the direction of the EPS market.

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