All types roll over / PA 6.6, PMMA still heavily affected by weak feedstock chain / Demand varies / No changes expected in July
Following the enormous upward movement in the previous months, prices initially reached their peak in the final month of the second quarter. With the massive drop in the cost of benzene, prices across the board remained in a rollover, aided by massive opposition from converters. At the same time, the situation in numerous feedstock chains has eased, with the exception of PA 6.6 and PMMA, where limited output and a lack of imports still had an adverse effect. With relevant glass fibres extremely short, the production of reinforced compounds also remained weak.
Demand from the building sector, including E&E applications, remained very strong, and producers were seldom able to fully supply ordered volumes. In many cases, even fixed allocation quantities could not be met in full. On the other hand, car production partly balanced out this lively business because assembly lines had to be slowed due to the chip shortage.
Quarterly buyers will presumably be hit by the price increases of the last few weeks in one fell swoop. Buyers who order on a monthly basis, however, might find that adopting a stubborn negotiating strategy could force a rollover, even if some additives remain scarce and expensive. The start of H2 will be very much characterised by lower demand from the automotive industry. Some OEMs have planned for longer-term production stoppages or are already taking such measures. This will reduce the call-off of components and thus also the ordering of raw materials from this sector.