PIE - Polymer Price Reports

Engineering Thermoplastics September 2015

Notations come under pressure / Slump in cost of benzene begins to impact PA 6 / Start of new quarter and VW crisis will nibble increasingly at prices during October

In many sectors, producers of engineering thermoplastics succeeded in just about keeping prices stable last month, largely protected by existing quarterly agreements. In the case of PA 6, on the other hand, the first visible signs of the benzene slump in recent months became apparent. ABS and PP compounds also followed the downward trends of their respective raw materials. The other products, however, remained stable despite coming frequently under pressure from the increasing influx of imports.

October could witness a widespread downward movement. On the one hand, the negotiations at the beginning of the new quarter will see customers who are tied to long-term agreements insist that the accumulated cost reductions are factored in to the full. On the other, low-priced Asian imports are again making increasing inroads into many market segments.

As if that were not enough, the entire automotive supply trade in Germany and Europe is currently under shock from the VW crisis. The uncertainty is so great that ordering is already being described as extremely sluggish. In a situation such as this, nobody can afford to tie up capital. This is sure to have a noticeable effect even though many players in the upward supply chain have perhaps not yet realised it.

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