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Updated to Q3 2016
Third-quarter polymethyl methacrylate (PMMA) contracts settled at a rollover, amid solid demand and rising upstream prices counterweighting balanced-to-long supply.
Solid demand, particularly from the derivative automotive sector, played a key part in negotiations.
Although demand took a seasonal dip in August, demand for July and September was at a robust level.
Rising upstream methyl methacrylate (MMA) prices were an important factor in discussions and resulted in a turning point for the PMMA prices, which had been consistently under downward pressure.
Although prices on the whole did not increase for PMMA, price stability marked a significant moment of the end of margin erosion for producers.
The main driving force of price drops in previous quarters had been low-priced Asian imports, weighing on prices and tipping the supply balance.
However, given the price increase in Asia for MMA, Asian imports decreased and are expected to remain at a lower level for the foreseeable future.
With fewer cheaply-priced imports in the market decreasing the supply level this also enabled producers to keep prices stable for the quarter.
Supply remained plentiful throughout Q3, however, with the upstream MMA market tightening there were some concerns on what the impact will be on PMMA supply.
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