Weak demand and significant drop in feedstock costs put pressure on prices / One exception: PMMA sees triple-digit rise

The market remained fairly well stocked with material, while demand continued poor. Apart from that, feedstock costs fell considerably – with one exception, namely MMA. The benzene reference price for July slumped EUR 162/t. Virtually nothing has changed as regards the production cutbacks. Producers’ stocks were further reduced and contracts were fulfilled at all times. The almost inevitable result was a further slide in quotations. 

The price cuts were, however, mostly in the range of less than 1%. One exception here were automotive PA grades, where the reductions were far more drastic because of the serious slump in the sector in question. Another exception from the general trend was PMMA, which rose EUR 160/t. The reason for this massive increase was the global shortage of the feedstock. MMA was, is, and will in all likelihood continue to be a rare material. On the spot market, PMMA prices have already been rising for some time, and the increases have now reached the contract market. An end to the upswing is not yet in sight. 

Apart from that, the pressure on the prices of the other engineering materials is likely to remain in August. The reductions of the quarterly contracts in line with the monthly contracts have not yet been carried out, and a positive trend turnaround in demand is certainly not to be expected during the summer holidays. The automotive sector remains weak. Where then is any impetus supposed to come from?

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