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MARKETS BRIEF: FEBRUARY 2020

March 6, 2020

Polycarbonate (PC) supply in February remains long in Europe, causing sellers to struggle to lift prices from the lows reached in 2019. After yet another rollover, increases look set to go through in March and April, which is in line with seasonal trends.

Polymethyl Methacrylate (PMMA) prices remain under pressure from weak demand, competition from imports and lower costs. In the short term, there is a greater chance for more decreases than increases.

Nylon 6 (PA6) producers continue to face a long market and low margins, with little scope for a recovery. The recent increases in benzene did not get passed on to the PA6 market it looks like prices will remain flat for some time.

Nylon 66 (PA66) market fundamentals continue to weaken, driven by slower economic growth and slower automotive production. Amid such weakness, prices will continue to adjust down from the highs reached when production issues caused severe supply shortages.

Acrylonitrile Butadiene Styrene (ABS) producers continue to fight to move prices in line with raw material costs amid strong competition from imports and low demand.

Styrene Acrylonitrile (SAN) demand recovered in January but retreated again in February. Prices moved with costs and, as with ABS, sellers for now cannot expand margins even if demand held better than many other polymers in February.

Polystyrene (PS) sellers continue to struggle to defend margins amid weak demand. Demand suffered another blow in February after expectations of a counter-seasonal decrease in Benzene influenced buyers to assume a cautious stance.

NOTE: For price indices, forecasts, and a more in-depth market analysis take a look at the GC INTELLIGENCE® Market Reports…

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