Demand in the past few weeks has softened in some key markets. Players report decreasing activity because of seasonal factors and because of ongoing disruptions to production downstream.
A softer demand scenario is building resistance for substantial price increases sought by producers to compensate for the recent spike in gas prices. Since the end of the summer, PMMA demand has been gradually declining from the automotive sector and the sheet industry.
At the same time, other important markets, such as visual communications failed to recover. This picture has not changed and is arguably getting worse as the seasonal low period approaches, particularly for the sheet industry. What is more, good availability will increase buyers’ confidence to remain on the side lines before the end of the year. The auto industry continues to battle with low production rates because of the shortage of semiconductors.
Demand for sheets is decreasing as expected because of the winter, but high inventories built in anticipation of stronger than expected demand for protective sheets in 2022 has likely reduced demand for extrusion grade as this application has decreased dramatically in 2021.
The end of the year is also a period of softening demand for the feedstock methyl methacrylate (MMA) due to the slowdown of the paints and coatings industry for the winter. Moreover, the industry has also likely been hit by the slowdown in automotive. PMMA demand is not expected to rebound until the end of the year and activity could remain subdued at the start of next year as increasing uncertainty will keep buyers cautious.
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.
- High Impact
- Injection Moulding