Composites/GRP September: Initial resin price increases in September already / Asking prices still rising in October as cost of styrene goes up / Demand could pick up over coming weeks / Glass fibre also firmer
In September, the first ortho resin transactions were mostly concluded at a rollover. From the middle of the month, however, contract prices rose noticeably, with increases of up to EUR 100/t. Imported goods, in particular, were only available at considerably higher prices. European producers took advantage of the situation and followed suit.
Demand, by contrast, remained virtually unchanged from the previous month. Orders from the E&E sector were still satisfactory and speciality applications for the construction industry also showed a slight improvement. The automotive industry, however, had still not regained its full potential. This could change in October, as converters’ order books are already quite full. Demand is expected to remain stable through to November, and the PIE panellists believe that it could even exceed the level recorded for the same period last year.
This will likely have a noticeable impact on prices. The clear EUR 279/t increase in the styrene contract alone is sufficient to drive up resin prices. In addition, imports are becoming more expensive due to higher transport costs. The situation for glass fibres is a similar one: producers are finally hoping to improve their margins with the start of the fourth quarter.