Ample Availability Cuts Down Polycarbonate Prices in Europe
- 01-Nov-2022 4:32 PM
- Journalist: Nicholas Seifield
The price of Polycarbonate observed a decline in the European market due to weak market sentiments from the consumers. The consumers hesitated to buy the products in the market. There is a slowdown in the European economy, the orders from purchasers have decreased, and the product's availability has been sufficient in the market. The demand from the downstream sectors like the automotive and construction industries has reduced due to the growing fears around recession in the Eurozone.
The overall Polycarbonate market fell in October in the European market, backed by decreased production costs and slightly improved supply chain conditions. The cost of production of Polycarbonate also reduced owing to the price decrease in the natural gas market. Germany has stored more than 90% of its natural gas, and other European countries like Austria and Hungary have exceeded their limit, while UK's storage is full in the region. However, experts believe that this drop in gas prices is only temporary and that the market will be in turmoil again when winter arrives, bringing increased demand for energy.
Furthermore, as port congestions, vessel bunching, and yard dwellings in the region have gradually decreased, the supply chain dynamics have improved resulting in cheaper imports and improved material availability. But some UK ports, like Liverpool still facing industrial actions until November 7, 2022, in the region.
As per ChemAnalyst, the price of Polycarbonate hovered around USD 4700/MT on an FD Hamburg basis with a weekly depreciation of 0.4% during the week ending October 28, 2022.
According to ChemAnalyst, Polycarbonate prices may further fall in the European market owing to the improvement in the supply chain and price decreases from the natural gas market in the region easing overall cost of production.