Sometimes up, sometimes down, but seldom stable: prices move in different directions / Uncertainty governs market / Trend reversal in February?

Prices for engineering thermoplastics showed a mixed picture in January. Polycarbonate, for example, crashed. Producers were not even able to pass through the higher benzene contract costs. Any attempts to do so were mostly ignored because demand was simply too weak. Polyamide prices, on the other hand, rose – only slightly, but an increase, nonetheless. PBT and POM also seem to have stabilised at their present levels. PMMA, however, fell, as good availability and weak demand put pressure on prices.

What is striking about this back-and-forth in prices is that all movements stemmed from the same cause, namely uncertainty. Market participants are still reluctant to venture any forecasts about how things will develop and when the economy will finally pick up. This hesitancy and indecisiveness of companies vividly illustrate the current mood in the German industry.

Another indicator is the near-total absence of any stock-building trends. For decades, January was the month in which converters put material onto their shelves in preparation for the seasonal upswing. This year, nothing of the sort. When converters that can afford it do buy material, they do so on the spot market. The importance of contracts continues to decline.

For February, producers have already placed their calls for increases on the market. However, the prospects of obtaining the full amount are small because demand still leaves much to be desired. Nevertheless, a trend reversal may begin to take hold.

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