Bullish Sentiments Largely Permeate Europe and Asia MMA Market in Ending August, with Eyes on the September Outlook

Hamburg, (Germany): During the last week of August 2024, prices of Methyl Methacrylate (MAA) have experienced stability to a modest increase across the European and Asian markets. A confluence of shifting demand patterns, potential supply constraints, and strong feedstock costs driven by production issues in the region has shaped the outlook for the month ahead, with players finding hike attempts for September more feasible as markets move through the summer months.

Prices of MMA have witnessed a slight increment of USD 23/MT in the Belgian market, although trading activity turned sluggish amid the ongoing seasonal summer lull with most market participants stayed away from business activities, prices gained momentum owing to supply crunches in the domestic market. Additionally, the cost support from feedstock Acetone was sufficient for MMA as its prices were observed on the higher end in the domestic market, reflecting a bullish market sentiment.  Moreover, domestic production across the bloc has been disrupted by lower rates and planned shutdown which resulted in the supply shortage of MMA in the domestic market. Furthermore, market participants reported that the producer of MMA in Italy Trinseo’s has planned to shut down its plant which may directly affect the reduction of market supply. Also, European producers are working to manage costs amid tight margins. Nonetheless, this has been offset by reduced MMA consumption. At the same time, there was a shortage of imported goods, with some Japanese producers expecting limited spot cargo allocations for September shipments.

Even though domestic demand for MMA from the downstream polymethyl methacrylate industry has continued to remain sluggish, key end-user construction and automotive markets have been in a trough period recently, dampening the demand for MMA. The spot market transactions were also tepid, with buyers’ limited purchases contributing to a subdued market environment thus, as a ripple effect prices of MMA CFR Antwerp were settled at USD 2530/MT during the week ending 30th August.

Similarly, MMA prices have also demonstrated a marginal increment of USD 20/MT in the South Korean market. The demand for MMA from the downstream PMMA industry has been moderate in the domestic market. Meanwhile, export demand for MMA has increased in an effort to restock the inventories which promoted the manufacturer to slightly revise their offers, in order to gain some profitability. Furthermore, the availability of MMA was limited as most producers were facing lower operating rates in the backdrop of restricted feedstock Acetone which supported the current price trend of MMA in the domestic market. Therefore, prices of MMA FOB Busan were settled at USD 2270/MT during the same time frame.

In the short term, ChemAnalyst anticipates prices of MMA are likely to remain firm in the Asian and European markets with restocking efforts, activity may pick up in September. Producers are projected to revisit price hikes with the potential for more significant increases due to tighter import supplies and a recovery in downstream demand. Additionally, feedstock Acetone prices may increase which may lead to high production costs of MMA in the regional market.