LONDON (GC Intelligence) – PMMA demand in Europe has not improved recently and it is arguably weaker than it has ever been in 2019.
Buying from most downstream sectors is restrained not only because of bad economics and seasonal downturns in demand but also because of the end of the year destocking.
With little hope of an imminent recovery in demand and falling costs, buyers are in no hurry to fill stocks, even if current prices are attractive.
The latest key data confirms current market feedback of weakness in demand.
Demand from automotive, for instance, is still poor, despite the figures showing an increase in sales compared to last year.
The sales numbers have been distorted somewhat by legislation last year pushing buyers to bring purchases forward.
In other sectors, such as construction, seasonal demand is down, and it will probably pick up in February.
The latest figures show production in construction in the EU in September was positive compared to last year, even though this rate of growth is slowing down.
While the data from all indicators is not disastrous, the lack of recovery and more slowdowns implies that any meaningful rebound in demand in the short term, namely in Q1, is unlikely.
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