Rollover, minor reductions dominate picture / PMMA bucks trend / July prices come under pressure as holiday season commences

The general weakness in demand took its toll in June, with engineering plastics posting either minor reductions or, at best, remaining stable at the previous month’s level. The only exception was PMMA, because shortages of the MMA feedstock, in combination with fewer imports (and thus less competition), provided for a price upturn. 

Generally speaking, however, the situation remained weak. Although a few participants in the PIE survey reported a slight increase in orders from car producers, others said ordering activity from this sector was just as sluggish as earlier. In the meantime, business in the building industry was unusually poor. 

Prices are expected to remain under pressure in July, because the start of the holiday period is expected to exacerbate the weakness in demand. On top of that comes the start of the new quarter, which converters could utilise, in view of softer prices, to make corresponding adjustments to their purchasing agreements. 

PMMA is again expected to buck the trend, because the shortage of MMA has not been eliminated, and the competition from imports is still low. This could play into the hands of local producers. 

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