Home Latest News & Insights INSIDE THE TURMOIL OF EUROPEAN ENGINEERING RESINS

INSIDE THE TURMOIL OF EUROPEAN ENGINEERING RESINS

March 15, 2024
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Inside the turmoil of european engineering resins. March has introduced new difficulties for sellers in the European engineering resins market.

Demand continues to be weak. Prices for critical resins like polycarbonate (PC), polyamide 6 (PA6), and polyamide 66 (PA66) have increased.

These price hikes result from elevated costs and diminished import competition. Despite this, there’s a consensus that the upward price trend might soon plateau.

Suppliers are finding it challenging to transfer these increased costs to buyers. In the case of PC, many are opting for price rollovers.

For nylons, the price increases are less than anticipated. The February panic, triggered by unrest in the Middle East, has subsided.

Market sentiment now mirrors January’s, marked by low demand and challenges in volume movement. Rising costs are now an additional burden, squeezing margins even further.

The market is shrouded in uncertainty, particularly regarding future pricing. Price reductions seem improbable, given the onset of peak seasonal demand in some markets and reduced import competition.

Yet, the impact of higher costs may negate any benefits from price increases.

Sales volume remains a critical challenge. This ongoing issue has prompted, and is likely to continue prompting, restructuring within the industry.

The persistence of these conditions reflects the complex dynamics at play in the European engineering resins market.