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August 24, 2011 07:00 AM

POM / PMMA stabilise as costs slow down

David K Platt
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    POM producers continued to call for higher prices during Q2 with producers citing growing demand, tight supply and the sharp rise in raw material costs as justification. Overall, contract prices for natural grade material have risen by €100/tonne since April.

    There have been no market-wide price announcements so far during Q3 with most producers focusing most of their efforts on bringing customers on low-price contracts back into line.

    POM supply has been very tight for much of the year with most producers placing their customers on allocation. The supply position did, however, start to improve in July and delivery times for both homopolymer and copolymer grades were cut to more normal levels.

    Demand for domestic appliances and sanitary applications continued to be strong throughout the last four months but order intake slowed significantly as the holiday season started.

    PMMA producers tabled planned price increases of €200/tonne at the beginning of Q2 reflecting the €100/tonne rise in the Q2 MMA contract price and rising energy and transport costs. They largely succeeded in meeting their price targets in Q2 but PMMA contract prices have subsequently stabilised at around end June levels following the €30/tonne rise in the Q3 MMA contract price.

    Demand has been good with a particularly lively order intake for production of car headlamps and lights. Orders for extrusion grade materials for sheet production was, however, less than expected.

    European production of PMMA has been restricted by feedstock availability and producers have placed customers on allocation. A slump in demand for Chinese TV monitors did, however, partially relieve the supply shortages for the automotive sector which absorbed any spare material.

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