London – (GC Intelligence) – The European Polymethyl Methacrylate (PMMA) market fundamentals remain weak and the price forecast was subject to another downward revision.
Supply has clearly increased and is certainly much better than a year ago. The market had been very tight during 2017 and the beginning of 2018, causing prices to spike to record levels. Since the start of the second half of 2018 supply has gradually been increasing. The lack of production issues, a slowdown in economic activity in Europe and in Asia and additional new capacity all contributed to increase supply. This increase in supply has continued into 2019 and will most likely place downward pressure on future prices.
The demand weakness seen at the end of 2018 has also continued in 2019. An overall economic slowdown that began around Q4 drove down demand. There is little to suggest the situation is getting better. The uncertainty of future growth continues. For example, Brexit looks like a disaster, Germany’s economic growth for 2019 has been revised down by the government, from 2.3 percent to around 1.8 percent. What is more, Italy has entered a recession. PMMA demand tends to peak during the spring months. But with the current state of the market, buyers will be in no hurry to fill stocks.
For a more in-depth analysis subscribe to our monthly Europe: Polymethyl Methacrylate (PMMA) market report. Take a Trial”