Tighter fundamentals and rising costs put an end to the relentless downward trend.
Polymethyl Methacrylate (PMMA) prices in Europe rolled over from Q2 to Q3, according to GC Intelligence assessments. PMMA demand has suffered during the pandemic disruptions, weakening demand from key segments such as automotive and construction.
PMMA extrusion, however, found support from a surge in demand for sheets used to protect people against the spread of the virus. This likely prevented prices from posting more decreases in Q3.
However, costs in Asia and in Europe are said to be on the increase. As such, sellers that experienced a loss in profits on the back of low demand are firm to avoid further losses. In August, market feedback suggests that some sellers are aiming to implement big increases, up to €300/mt.
Demand is for now unlikely to support these increases as some sectors are still not back to pre-pandemic levels. Moreover, demand for protective sheets will not support a price increase because in recent weeks the growth in such applications has eased, reducing lead times from five weeks to three weeks.
Producers should be able to implement increases if costs continue to increase and demand picks up after the holidays. The magnitude of the price increases, however, will depend on how much costs will increase and how much market fundamentals will improve.