PMMA producers experience more pressure from higher energy costs in June in Europe after another spike in gas prices.
With players along the value chain operating with extremely thin margins, many will fight hard to limit further damage.
Prices of polymethyl methacrylate (PMMA) increased in line with energy costs lately. But margins have remained squeezed for producers. Most had little choice but to decrease operating rates to balance the market.
Options remain limited for all participants as they are currently operating with high costs and low demand.
The recent spikes in gas prices from around €80/MWh to once again above €120/MWh, if sustained, could lead to further increase proposals by producers.
But the lower demand in the summer and because of many negative factors slowing down activity, such as supply chain issues, could counter any additional upside.
Nonetheless, with producers operating with very thing margins, it will be difficult for buyers to resist higher prices in July.
The war in the Ukraine and its impact on the European market proves once again disastrous. Many players along the value chain continue to lose competitiveness against other regions.