Composites/GRP March: Significant increase in monthly contracts / Individual specialities no longer available / Massive hike for styrene sets tone for April
The war in the Middle East and the renewed increase in the price of styrene in March prompted a significant rise in the monthly contracts. And the hike would have been even greater had it not been tempered by the quarterly contracts.
Very few imports and the ongoing production cutbacks in Europe considerably reduced the number of potential suppliers. Individual specialities were already reported as being in short supply or no longer available. Most converters were still thinking back to the pandemic and adopting the cautious approach of only ordering the material they knew they actually needed.
The war in the Middle East is not yet over and the EU’s anti-dumping tariffs are taking effect. Prices can thus rise sharply with the start of the new quarter. The styrene contract for April is providing a taste of things to come, having skyrocketed EUR 469/t on the previous month.
Concerns about the security of supply are not helping matters, either. It is becoming clear everywhere that the tide is turning in favour of a seller’s market. No momentum to boost demand is evident in either structural or economic terms. The construction industry needs somewhat more material here and there but, for the rest, converters are only ordering what is absolutely essential.
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