Prices fall on a broad front / Demand remains weak if not disastrous / Recovery not expected until next year

It was almost inevitable – producers were no longer able to resist the enormous pressure from the weak demand. The quarterly reductions for engineering thermoplastics were up into the triple-digit range, and monthly contracts also experienced a considerable decline. Although producers cut back output as far as they could, stock levels continued to rise. On the demand side, the automotive sector was still weak, and other segments such as E&E also trended even slower than before. 

The second slice of quarterly reductions is likely to drag prices further down across the board. In some cases, market players even expect triple-digit falls. Because orders are generally for very low quantities, producers’ inventories will likely continue to swell. On top of that, imports from Asia are set to pump up the supply situation even more. There are still no signs of any impulses that could lead to anything like a recovery – quite the reverse. 

PMMA was the only polymer to finish October in an uptrend. Producers will likely endeavour to repeat this in November and can therefore be expected to ask for more money for their goods. Whether they succeed, however, is questionable. Poor demand and increased imports could well put a spanner in the works.

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