Prices fall further across the board / Demand stagnates to unsustainable level

Global oversupply, coupled with persistently weak demand, led to a further fall in prices for nearly all engineering thermoplastics. Once again, converters were able to take advantage of this situation to negotiate lower prices. However, in some applications, quarterly contracts and material commitments offered producers limited price support. European production remained significantly curtailed, with many manufacturers operating on an as-needed basis. Although imports from Asia decreased somewhat, they still contributed noticeably to market oversupply.

Overall, demand remained weak, according to PIE’s advisory panel. In Southern Europe, demand declined even further. Apart from that, there were reports from the DACH region (Germany, Austria, Switzerland) of the first signs of recovery from the automotive industry. Converters are still operating with commercial caution. At present, nobody is willing to take risks, and purchasing is done strictly according to need.

The downward price spiral is not yet at an end. The material surplus is simply too large. In July, however, producers will do everything they can to stabilise prices. Utilisation rates of European automotive plants vary considerably. While some are running more or less normally, others are drifting along very slowly indeed. For converters, this means business as usual – placing orders only in line with actual demand.

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