Market slump continues / Abundant material despite production cuts / Demand weakens further across segments / No improvement before end of year?

The situation developed much as expected last month. Producers were unable to escape the pressure of weak demand and had to concede to calls for price cuts. The simpler the grade, the larger the reductions. Despite all the cutbacks, producers’ inventories grew further and now stand well above normal levels. It wasn’t only the automotive sector that remained persistently weak – the E&E segment, as well as other industrial sectors, also took less material than anticipated. The hoped-for boost from the K 2025 trade fair in Düsseldorf, Germany, failed to materialise.

The second batch of quarterly reductions is due in November. Some converters are even speculating on triple-digit price cuts. In all probability, the volume of sales will remain low. For this reason, a reduction in stock is highly unlikely. And if that were not enough, imports from Asia are also adding to the already abundant supply. There is no sign of any impetus from anywhere. The first converters are already working on concrete saving plans – including job cuts.

One exception was natural POM. Although the entire market was caught in a downward trend, producers were able to carry over the contract prices from the previous month. Converters who purchased larger quantities were rewarded for holding steady on contracts through special deals. The production cutbacks were so well balanced that inventories rose only minimally, if at all. Producers will likely again aim to hold prices steady in the coming month – a goal that could succeed if import volumes remain lower.

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