Calm prevails / Quarterly agreements forestall rises in final month of Q2 / July expected to see a spate of increases

The European engineering thermoplastics price front was relatively calm in June, which is not unusual for the final month of the quarter. Notations for all polyamides, shored up by the existing Q2 agreements, moved largely sideways, as did those for PBT, POM and PMMA. Only polycarbonate producers were able to record moderate increases - the result of their incessant efforts, dating back to the beginning of Q2, to push through hikes. In most cases, the increases were limited to more specified grades or smaller volume orders. The cost of standard basic material largely remained unchanged. ABS basically followed in the footsteps of the feedstock mix of styrene, ACN and butadiene, which fell by about EUR 30/t. By contrast, the price of freely negotiated PP compounds rose after contracts indexed to C3 climbed to a new level in the wake of the rises in propylene prices in previous months.

On the demand side, the automotive sector continues to order healthily. With the start of the new quarter, which also brings new half-year agreements, many prices are likely to rise. Benzene derivatives such as PC, PA 6.6 and, to a certain extent, ABS, will almost certainly be pushed up by the renewed EUR 99/t in July's benzene contract. PA 6.6 and PMMA notations are also likely to climb. While there is a possibility that PP compounds prices will rise, too, both PBT and POM will probably roll over.

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