Despite Low Inventories, European Polymethyl Methacrylate Prices Decrease in January 2024
Despite Low Inventories, European Polymethyl Methacrylate Prices Decrease in January 2024

Despite Low Inventories, European Polymethyl Methacrylate Prices Decrease in January 2024

  • 14-Feb-2024 2:25 PM
  • Journalist: Jung Hoon

Hamburg (Germany): In January 2024, persistent downward pressure lingered across the European Polymethyl Methacrylate market, supported by a lack of demand recovery in key consumer industries. Low feedstock prices have further eased the prices of Polymethyl Methacrylate within the region. However, the supply of Polymethyl Methacrylate has been limited due to supply chain disruptions, but it has not significantly impacted prices at a broad level. Market players speculate that prices of Polymethyl Methacrylate might begin to rise in mid-Q1 of 2024 due to further expectations of tight supply and high raw material prices. Demand from the downstream derivative industry is also expected to improve in the coming weeks, potentially escalating prices within the regional market.

Prices of Polymethyl Methacrylate have shown a decrement of USD 70/MT in the German market. The cost support from feedstock Methyl Methacrylate was limited to Polymethyl Methacrylate as its prices settled on the lower end in the given time frame. These factors have led to bearish market sentiments regarding Polymethyl Methacrylate among manufacturers. Regarding domestic production, manufacturing firms have been operating at low rates in response to weak downstream demand as well as the train drivers' strike. In addition, the German manufacturing Purchasing Manager Index rose slightly from 43.3 in December to 45.5 in January 2024, although it remained firmly in contraction territory. Furthermore, the supply of Polymethyl Methacrylate was constrained, reflecting the impact of uncertain supply caused by the Red Sea/Suez Canal crisis. Nonetheless, it currently has a limited bearing on Polymethyl Methacrylate prices.

Apart from this, demand for Polymethyl Methacrylate from the downstream construction industry has remained inactive due to macroeconomic headwinds, weighing down prices in the domestic market. According to market sources, Germany's construction Purchasing Manager Index dropped from 37.0 in December to 36.3 in January 2024, indicating a sharp contraction in overall building activity. However, inquiries from the automotive industry have been moderate within the domestic market. Market transactions were mainly based on small orders. As a result, prices of Polymethyl Methacrylate FD Hamburg were settled at USD 3125/MT during January 2024.

Looking ahead, Polymethyl Methacrylate prices are expected to increase in the coming months as market players replenish materials within the region. Demand from the downstream derivative industry is anticipated to gain pace after the post-holiday season. In addition, cost pressures from feedstock Methyl Methacrylate are likely to increase, which might positively impact the production cost of Polymethyl Methacrylate. Furthermore, supply-side issues are expected to further raise prices.

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