The relentless shortages seen during the past few months continued in May. For some, the supply situation has become worse, forcing them to heavily reduce or completely shut down production. While weak signals of an improvement emerged, visibility remains extremely low.
PC
Polycarbonate (PC) sellers reduced allocations further and announced price increases of around €500/mt.
PMMA
Polymethyl Methacrylate (PMMA) demand during the spring season has picked up which is likely to support higher prices in Q3.
Nylon
Nylon 6 (PA6) buyers continue to face short supply and higher prices. At the same time, sellers seek to pass on the recent increases in benzene prices.
Nylon 66 (PA66) production issues accumulate, with many producers declaring force majeure (FM).
Styrenics
Acrylonitrile Butadiene Styrene (ABS) supply looks set to increase as acrylonitrile (ACN) production issues abate.
SAN
Styrene Acrylonitrile (SAN) buyers face critical shortages and high prices. However, the upside has eased.
PS
Polystyrene (PS) demand for some sellers decreased in May as buyers expect lower prices in June.
PBT
Polybutylene terephthalate (PBT) supply from Asia is increasing for Q3. But for now the European market remains extremely tight.
PP
Polypropylene (PP) prices appear to have reached a peak. Meanwhile, supply has not improved for many buyers.
While some negative demand pressure is building, in the form of shortages of semiconductors and inflationary fears, not much will change in the short term. Most players are running low inventories amid turnarounds and ongoing supply issues. As such, even if demand downstream slows, it will take longer for the polymer industry to feel the impact.