08/09/2018

PIE - Polymer Price Reports

Engineering Thermoplastics July 2018

Next explosion of PA 6.6 prices / Otherwise mostly stable conditions / Demand noticeably shrinks / Minor movements expected in August

Declining demand in July was the main reason for stagnating prices of engineering thermoplastics in Europe. For many grades, supply improved for the first time this year due to the rather restrained outflow. There have even been the first announcements of reduced delivery times for PC and PA 6. The exception was PA 6.6, which remained heavily troubled. Further production cutbacks have prolonged the ongoing scarcity. Prices skyrocketed, and monthly buyers were hit by the producers' full broadside in the starting month of the third quarter. By contrast, ABS declined due to a slumping styrene. All other grades mostly moved sideways, including PP compound grades that are close to commodities.

In August, things will probably continue to move largely sideways. Demand should further decline across the board, as a summer slump is expected. However, supply has been adjusted to the situation, so that there should be little reason for change. Considering the price spike at the beginning of the quarter, things are likely settled for PA 6.6 for the remainder of Q3. Meanwhile, PMMA customers are increasingly grumbling, but it remains to be seen whether that will be enough to achieve discounts in August.

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