Tight supply boosts POM / PMMA prices

Sellers’ efforts to raise prices were supported by a virtual absence of imported material in Europe and tight availability from local suppliers.

Producers are holding very low stock levels and are having to put customers on allocation. The market was further tightened as BASF announced an undeferrable closure of its POM production lines in May and June due to maintenance.

Meanwhile, demand has started to show signs of recovery. Order activity from the key automotive and E&E sectors was particularly lively during Q2 with the consumer segment also performing strongly.

Following the sizeable price hikes in April and May, no further calls for price increases had been announced by end June. However, rising import notations and tight supply may encourage European producers to ask for even higher prices during Q3.

PMMA producers achieved price gains of €100/tonne during Q2 supported by rising MMA prices, low import volumes and very tight local material availability.

Stock levels at European PMMA producers are very low and Asian imports have dried up because of strong local demand in the region.

Rising activity in the automotive sector helped PMMA demand strengthen, while sales to the building and garden sectors showed their usual seasonal upswing.

With the tight supply situation unlikely to improve in the short term and demand expected to continue to rise, further PMMA price increases are on the cards for Q3. Evonik has already announced planned price increases of 12% for its PMMA semi-finished products, effective 1 July 2010.