Solid supply with weak demand and increased imports / Order slump expected to continue in May

Subdued demand and a certain lack of orientation as to how demand would develop were reflected in the contracts reported. From discounts in the three-digit range to rollovers and markups, such as for PMMA, everything was included. Contracts finalised at the beginning of the month remained at a rollover for the most part. The longer April lasted, the higher the price declines became.

For almost all grades, the output of European plants offered an adequate, solid supply, although production was mostly curtailed. Increased imports from South Korea and China ensured that contracts were fulfilled. The PIE price panel reported the first, early maintenance work. Processors continued to buy only minimally. The construction season did show a little more demand here and there. However, it was not enough for larger stock replenishments.

European producers are expected to continue feeling the effects of weak demand and competitive prices from East Asia next month. However, quarterly contracts are likely to keep prices stable for the most part. Customers plan to push through further price reductions. Compounders might thus react by restricting supply in order to support quotations. Neither automotive nor E&E or construction might really be able to boost demand. The already prevailing wait-and-see attitude of processors remains.

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