Cost explosion sends shock waves through the market / Polyamides make a triple-digit leap / Step-by-step implementation of quarterly increases / Rally to continue
As expected, the shock waves emanating from the global price explosion in key feedstock chains in February quickly swept through the European engineering thermoplastics market. Particularly hard hit was the commodity-related ABS, which suffered from both the styrene blast and the butadiene blast.
With the classic engineering polymers, it was the polyamides that took the brunt of the blast, and their producers also had to cope with considerable price rises from upstream. This has already been reflected in triple-digit rises in the monthly trading business. All the other products covered by this report have also risen, sometimes to catch up on past quarterly increases and sometimes to pre-empt future ones.
The upward rally is not yet over. The polyamides in particular are still rocketing with a velocity seldom seen in the past. ABS will also continue its inexorable climb, although perhaps a little slower than before. With all other types, producers will carry on with their usual piecemeal approach, pushing through the triple-digit quarterly increases in stages in the freely negotiated monthly distribution and trading transactions. Overall, rising prices will continue to gust through the markets, particularly as demand is presently showing few signs of weakness.