Prices move in different directions / Calls for significant increases plus weak demand mostly limit price rises / Further slowdown expected in June

In May, the market for engineering thermoplastics developed in different directions depending on the type. Producers’ substantial price increase demands were met with only very limited willingness on the part of converters to accept them. Many converters simply cannot afford the increases, as there is a lack of orders from customer sectors.

One clear trend emerged: the lower the producer’s degree of backward integration, the larger the increases. The limited situation affecting several base polymers continued, forcing production cutbacks. Imports from Asia arrived in Europe only in negligible quantities.

Minimal demand from end markets also kept converters’ ordering activity at a low level. As a result, purchasing behaviour remained unchanged from the previous month. Buyers purchased only what they absolutely needed.

The price upswing is likely to remain intact in June, although the already elevated prices levels are having a significant dampening effect on demand.

Car producers are also cutting back on their orders. Imports that have already been announced will likely keep price increases within narrow limits. On the converter side, no improvement in the situation is to be expected. With weak demand from customer markets, companies will likely continue to buy only what they absolutely need and try to pass on the cost increases to their customers.

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