Europe and US Polycarbonate Prices Likely to Decline in October 2023 Amid Stagnant Demand

The price of Polycarbonate in the European market has exhibited a stable to weak pattern over the last two weeks. In Germany, automotive registrations remained stagnant in September, primarily due to a decline in sales of battery-electric cars after government incentives for business buyers were discontinued. This trend has continued into the early part of October 2023. During the past week, there has been little to no change in demand from the downstream automotive components industry. This lack of change in demand indicates a period of low interest in Polycarbonate during this timeframe. Moreover, consumer enthusiasm for purchasing also remained subdued. One contributing factor to this reduced enthusiasm is the impact of rising interest rates. Additionally, economic activities in the German market have been marked by uncertainty. This uncertainty could have further contributed to the decline in consumer confidence and reduced purchasing activity.

Additionally, the construction industry has been experiencing a prolonged period of decline, and this has resulted in weak demand for Polycarbonate within this sector. Companies operating in the construction industry have cited several factors that have impacted their operations, including financial constraints, continuous cost pressures, and uncertainty among customers. Consequently, purchases within the construction sector have remained sluggish, falling short of desired levels. This situation underscores the subdued demand for construction materials, including Polycarbonate, in the German market.

The expectation is that there will be no substantial changes in any of the purchasing sectors. The construction industry is moving forward at a stable but not particularly remarkable pace, and the automotive and related industries do not anticipate any significant stimulus or major changes until the end of the year. These factors indicate that European Polycarbonate prices may experience a weakening trend in the coming weeks, given the prevailing conditions and influences in the market.

As per ChemAnalyst, the cost of Polycarbonate IM and GP in the German market was settled at USD 4360/MT and USD 4095/MT on an FD Hamburg basis during the second week of September 2023. The price of Polycarbonate IM was established at USD 3274/MT on a DDP basis in the US Gulf region during the second week of October 2023.

Conversely, in the US Polycarbonate market, prices have experienced a decline over the past few weeks. As October 2023 approaches, Polycarbonate prices are expected to continue to decrease. Several factors contribute to this trend, including labor strikes and the availability of competitively priced imported goods from overseas markets. Moreover, the construction sector is currently exhibiting signs of weakening, and the automotive industry is overshadowed by labor strikes, which are likely to impact both auto sales and production. This decline in demand for Polycarbonate within the downstream industries is driving the prices of the product downward. Additionally, it has led to an accumulation of the product within the US market, further influencing pricing dynamics.