TECHNICAL THERMOPLASTICS
Following commodities higher / Major price increases in Q 4 / More upward momentum?
Manufacturers of technical thermoplastics appear to be scrambling to keep up with – or even surpass – the frenetic price hikes being seen for commodities. There are two logical explanations for the current upward trend. In the first place, prices for both categories of plastics are rising parallel to increases in the price of their respective starting materials. Short inventories also are a factor (see PIE 18, 1999). Time will tell whether the higher prices will be accepted, but this is how the markets were moving as we went to press:
ABS: The long depressed ABS market began to show a definite firming tendency as the fourth quarter got underway. Producers were determined to lift prices by at least 10 European cents/kg by the end of the year. First announcements were in the mailboxes in early October, as lively demand from converters continued. First to feel the effects were likely to be coloured product.
PC: The leading producers all announced increases – averaging 25 cents/kg – for the middle of October. Due to the extension of already long delivery times, there seemed little doubt that converters would have to go along.
PA: The price increases of around EUR 130/kg for feedstock caprolactam in the third quarter have begun to show their effects. PIE´s research has turned up only a few “bargains;” most buyers are already paying more. As caprolactam is likely to increase again by about the same margin during the fourth quarter, buyers of PA 6 are sure to face further hikes of up to 15 cents by the end of 1999. Numbers for glass fibres are likewise on the way up, so that manufacturers of reinforced plastics also will be asked to pay more.
PA 6.6: The period of calm seems to have drawn to a close for this polymer, too. Up to year´s end, customers will be asked to help foot the bill for manufacturers´ price increases for hexamethylene diamine and adipic acid. However, the hikes on the downstream side are likely to be smaller.
POM: The market leader has announced a 15-cent increase for the end of October, and other producers surely won´t just sit around and watch. The higher European numbers no doubt will not be without effect on – extremely cheap – import material.
ABS: The long depressed ABS market began to show a definite firming tendency as the fourth quarter got underway. Producers were determined to lift prices by at least 10 European cents/kg by the end of the year. First announcements were in the mailboxes in early October, as lively demand from converters continued. First to feel the effects were likely to be coloured product.
PC: The leading producers all announced increases – averaging 25 cents/kg – for the middle of October. Due to the extension of already long delivery times, there seemed little doubt that converters would have to go along.
PA: The price increases of around EUR 130/kg for feedstock caprolactam in the third quarter have begun to show their effects. PIE´s research has turned up only a few “bargains;” most buyers are already paying more. As caprolactam is likely to increase again by about the same margin during the fourth quarter, buyers of PA 6 are sure to face further hikes of up to 15 cents by the end of 1999. Numbers for glass fibres are likewise on the way up, so that manufacturers of reinforced plastics also will be asked to pay more.
PA 6.6: The period of calm seems to have drawn to a close for this polymer, too. Up to year´s end, customers will be asked to help foot the bill for manufacturers´ price increases for hexamethylene diamine and adipic acid. However, the hikes on the downstream side are likely to be smaller.
POM: The market leader has announced a 15-cent increase for the end of October, and other producers surely won´t just sit around and watch. The higher European numbers no doubt will not be without effect on – extremely cheap – import material.
31.10.1999 Plasteurope.com [17756]
Published on 31.10.1999