The price forecasts in June were revised up on all grades, reflecting the latest development in energy prices. However, with demand continuing to fall, buyers will struggle to pass more increases downstream.
But from a producers’ perspective, during the past year margins have not increased as much as other polymers, such for polycarbonate (PC) and acrylonitrile butadiene styrene (ABS).
Therefore, there has been tremendous pressure during the past few months to increase prices or reduce production amid rising costs. Prices looked set to remain stable during the summer but the latest increase in gas prices has changed the outlook also in the short term.
The upward revision has shifted the entire forecast curve up. More increases are forecast in the winter when gas prices will probably stage another major increase in line with a seasonal surge in demand for gas. The upside will continue in January but weak demand amid inflationary pressures and an expected downward correction in energy costs in the spring should start to lead to decreases at the tail end of the forecast.
Nevertheless, all aspects of the market remain volatile and less predictable. The recent increases in gas prices have tilted the price outlook to the upside. Nonetheless, softening demand and recent signs of lower methyl methacrylate (MMA) prices could limit or even prevent any increases, at least in the short term.
The market update is an exerpt fromt the monthly report.
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The GC Intelligence™ Polymethyl Methacrylate (PMMA) Market Prices, Forecasts, and Analysis report is published during the third week of the month. The report provides market insights and analysis and tracks High Impact, Injection Moulding, and Extrusion PMMA prices.
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