PIE - Polymerprice Reports

Engineering Thermoplastics February 2015

Further price erosion / Aromatic derivatives yet to bottom out / POM stable, PMMA pointing up / March likely to see further price cuts despite a revival in demand

In February, the price erosion experienced by many engineering thermoplastics in Europe continued at more or less the same pace. Contrary to the trend among standard thermoplastics, there was no sign of notations bottoming out, let alone turning around. The only materials that were somewhat exposed to this trend were the more commodity-related ABS (see PIEWeb of 04.03.2015) and PP compounds (see PIEWeb of 04.03.2015), although in these cases, too, notations still pointed downwards. The downtrend was much more clear-cut for polycarbonate, the polyamides and PBT. The gas-based POM, on the other hand, was generally stable, while PMMA bucked the trend and rose again due to the tightness of the MMA market.

In March, ABS and PP compounds are likely to follow the upward trend of their respective feedstocks. The EUR 105/t rise in propylene lifted notations to a higher level, while the monthly styrene contract virtually exploded, tacking on EUR 175/t. The latter is sure to impact ABS. POM and PMMA, too, are expected to continue on their present paths. By contrast, aromatic derivatives will probably continue moving down since the cost reductions have yet to be factored in to the entire value chain. There will be some scope for negotiation in the upcoming Q2 contracts. With demand expected to revive, notations for several engineering thermoplastics could bottom out in March.

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