Abundant supply meets meagre demand across all grades / Europe dozes during summer holidays / Prices to decline further in August

July produced nothing new as far as engineering thermoplastics were concerned. The market remained abundantly supplied, while ordering activity remained weak. This combination led to further price erosion. Price negotiations were largely shaped by sluggish demand and falling costs for base polymers. Producers looking to generate any sales during the holiday period were often forced to grant converters substantial concessions. Quarterly contract prices saw even more pronounced downward adjustments.

For some applications, existing material commitments helped prevent sharper price declines for compounders. Nevertheless, the mix of weak demand and aggressively priced imports from Asia exerted considerable pressure on prices, resulting in a further fall. Production plants were operating at sharply reduced rates. However, producers had sufficient material to fulfil the contracts on time and in full. With the holiday season in full swing, the market lacked any stimulus, and order activity remained low.

In negotiations for August, converters are expected to again push for further price cuts in line with movements in quarterly contract prices. On the demand side, no positive impulses are expected, which will likely worsen the strained market situation. The market is expected to remain slightly oversupplied, and supply shortages appear unlikely. But where are fresh orders supposed to come from? Peak summer holidays continue across Europe, with multi-week plant shutdowns still common – particularly in southern regions.

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