Led by strong growth in the automobile and commercial vehicle sectors, the market for sheet moulding and bulk moulding compounds (SMC and BMC) grew 8% in 1995, says a report by Duroform J. Fritz GmbH & Co KG (HQ: D-56357 Miehlen) and Molding Compounds, both subsidiaries of Alusuisse-Lonza. By comparison, growth in the electrical and construction sectors was "minimal." Developments also varied from country to country. While demand in Germany showed a substantial rise, growth in France slackened to 3%.

The availability of glass fibre starting materials is assured for 1996, and the industry expects no supply bottlenecks, although prices are on the rise. In the words of Duroform's European marketing manager G. Montagno, "We have enough glass, but starting in January it will cost us 8% more." There has been some easing of prices for the starting materials for UP resins, styrene and MSA, but this will not compensate for the increase in glass prices.

The two leaders in the "free" European SMC and BMC industry say that prices for compounds will remain steady for the most part in Q1 1996. However, there are likely to be increases for some products. In response to customers' calls for stable prices, Duroform and Molding Compounds note that "all European manufacturers of compounds will face higher production costs as of 1 January," and add that converters should not plan on lower material costs.

Prices for GRP starting materials rose as follows in 1995: Glass by 20%; fillings 20%; solvents 60%; resins 15%. In Q4, prices eased off (except for glass). In line with price increases for starting materials, prices for finished products rose by up to 15% (not counting other higher costs). By contrast, the GRP industry was able to lift its prices by only 3-5% – if at all.