POM producers announced planned price hikes of between €200-250/tonne during the final two months of Q1. They based their price demand on rising energy, wages and transport costs as the Q1 methanol contract price had only registered a gain of €38/tonne. Producers were largely successful in achieving their price target due to ongoing supply tightness and stringer demand.
There are long-lasting restrictions on production following last autumn's annual maintenance work at major producers and order backlogs are still being worked off. Ticona was still heavily occupied with its relocation to the new plant. Delivery times have lengthened, particularly for copolymer and specialty material.
Demand is good with strong order intake reported for the domestic appliances and sanitary sectors.
Producers are expected to maintain the upward price momentum over the next three months, despite the reduction of €10/tonne in the Q2 methanol contract price.
PMMA sellers have continued to implement the price increases previously announced last September during Q1. Overall, notations have risen sharply during the last two quarters, especially at the lower end of the price scale.
Supply is tight with output insufficient to meet the high level of demand. Producer stocks are also very limited and virtually all suppliers had their European customers on allocation. In addition, considerable volumes were shipped to Asia to serve the booming monitor market.
In Europe, acrylics demand for the automotive industry is booming and the building sector is picking up after a slow start to the year.
Leading PMMA suppliers announced price hikes of between €150-200/tonne effective 1st April, reflecting high market demand, low monomer availability and raw materials price increases.