EU car registrations increase in June, according to the latest figures by the European Automobile Manufacturers’ Association (ACEA).
The numbers show an increase of 10.4% in June 2021 compared to June 2020. The increase reflect a rebound from the slump last year.
However, the numbers are against a low base. In fact, the decline in June last year was 22.3%. This suggests another market development, that raw material shortages is stifling production.
In the past few weeks, many suppliers to the automotive industry said demand has fallen 15-20%. A major reason for the slowdown is attributed to the shortage of semiconductors forcing plants to shut down or reduce operations.
What is more, the start of another wave of the pandemic is causing labour shortages in some countries, increasing the risk of yet another major factor that could impact production.
For now the polymer industry shows no signs of a fall in demand. Many buyers continue to source volumes because recent shortages depleted their inventories.
The industry is also increasing stocks to prepare for an eventual rebound after downstream industries overcome issues of raw materials.
However, if raw material shortages continue to impact production, an extended period of low demand could start to impact demand for polymers.