London (GC Intelligence) — The downward trend in prices seems to have been easing in August. As margins on some accounts are low and could even be at break-even point, sellers appear to have started to resist further price decreases.
At current prices for extrusion polycarbonate, margins are close to turning negative and it is not surprising if some accounts have already reached this point.
Extrusion prices have fallen almost €1000/mt since August 2018. Such a steep and rapid fall has placed considerable strain on producers’ profitability.
This is a complete turnaround from 2017 and 2018, when supply was very tight, and prices spiked.
While monthly prices were assessed slightly down in August, there were also attempts to increase prices on some accounts, but we understand this was met with little to no success.
From July to August, general purpose polycarbonate was assessed €25/mt down and extrusion was also down, by €30/mt.
With the seasonal slowdown soon approaching amid such a weak market environment, it is difficult to envisage price increases at any point before the end of the year.