Sellers´ market drives prices higher / Converters under risk of running out of money / Difficulties expected to continue in May

The strength of the sellers’ market drove prices sharply higher last month despite weak demand. With PMMA, in particular, many calls for increases reached four-digit levels. Despite low import volumes and ongoing production cutbacks across Europe, contractual commitments were largely met – although sometimes with minor delays and only at the lower end of the agreed volume range.

However, available material was insufficient to satisfy larger orders aimed at stock-building. In addition, many converters, faced with an increasingly precarious financial position, were forced to adjust their purchasing strategy. As a result, they bought only what they needed in the short term and were extremely price-conscious. For many smaller converters, credit lines are largely exhausted. They are barely able to absorb price increases and are often unable to finance the volumes they actually require. A liquidity crisis now looms over the segment.

An improvement is not in sight. In May, producers are again expected to push through further substantial price increases. The extent of these rises depends above all on the arrival of imports. As in April, converters are likely to limit purchases to essential volumes only, and in some cases only when end-customers accept higher prices.

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