The PMMA price rollovers expected in Q4 in Europe will bring to a halt the recent upward trend. The main reason for this ease in the upside is the current slowdown in demand.
There is also a good chance that producers’ margins will decrease in Q4. This is because the upward momentum remains in place on methyl methacrylate (MMA) prices.
The higher MMA prices during 2021 played a major part in pushing up PMMA prices.
But as PMMA supply is now better, prices reached high levels, and the market is entering a seasonal slowdown, the upward momentum has eased.
Decreases on PMMA prices are not expected in Q4. But additional slowdown in demand could start to translate into lower prices in Q1.
In addition to a seasonal slowdowns in demand during Q4, there could be a significant slowdown in demand from the auto sector.
The sector has been struggling with a shortage of semiconductors. And many plants were forced to shut down or ease production.
Should the semiconductor shortages continue or indeed get worse, then PMMA sellers will feel the impact.
In addition to the slowdown in the auto sector, other markets are also suffering.
For example, the visual communications sector is still subdued and has not picked up since the pandemic.
There is certainly a feel that the momentum is shifting in favour of stability and possibly retreats.
And there is a risk that polymethyl methacrylate (PMMA) prices could soon start to retreat from the current highs on the back of lower demand.