monta’s Current Market Situation and Outlook for 2011
The year 2010 is coming to an end and it is time to review the year and venture a glimpse into the upcoming 12 months. The boom, which was recorded at the end of 2009, continued to emerge in 2010 with an intensity that few could foresee. Lost sales volume could be regained during the first three quarters of the year. This positive trend will certainly continue in the last weeks of this year.
All in all, 2010 has proved to be a successful year. The only dismerit were the volatile raw material prices, especially those of natural rubber and various crude oil derivates, which are important for monta’s production process. Currently, the supply price of natural rubber is twice as high as in the fourth quarter of 2009. Exclaiming a ‘force majeure’ has become common practice for multinational crude oil companies, at times truthfully, but at times fictitiously in order to justify the rising prices. An additional reason is the enormous raw-material-appetite of the Chinese and other Asian markets coupled with a recovering automotive industry.
Price increases have only been carried marginally on the market. Consequently, necessary adjustments were implemented only partially or not at all at the expense of profit margins, as an attempt not to destroy the delicate ‘upturn’.
Forecast for the year 2011
Generally, prospects for Germany are good. The economy will increase by approximately 2.7%. Unemployment rates are expected to decrease by approximately 400,000 in comparison to 2010 and will most likely level off at roughly 2.8 million. The country’s economic performance is likely to increase within the export and engineering industries, and German automotive engineering will return to its prior performance.
The forecast for the self-adhesive tape sector is not as positive. Supply bottlenecks for films, resins and natural rubber will continue to make business more difficult next year. All efforts will be concentrated on ensuring the supply-chain.
Maintaining a sufficient supply of raw materials will be key to success. The purchase price will play a minor role in this situation, as it is dependent upon having sufficient quantities of production goods available. It remains the major goal of monta to secure the supply for the customer base throughout the year 2011.
Market situation for monta’s competitors
Due to the stated extended delivery times on the one hand and the incomprehensible price policy on the other, current capacities are reduced. It is unknown whether these are the result of a lack of raw material or to supply bottlenecks.
3M takes over the company Alpha Beta in Taiwan and absorbs huge production capacities in the acrylate and masking sectors as well as enormous market shares. It will be interesting to see whether this acquisition will have any effect on the European tape market.
The year 2011 will be no less exciting than 2010. In consideration of all the factors, a positive growth in the new year could range between 5% and 6%.