The prices of Methyl Methacrylate have witnessed a downward trend across the Asian and European markets during the second week of August 2023. The price decline was majorly attributed to the low upstream values, subdued downstream demand, and sufficient inventories among the manufacturers. Additionally, the weak global economic recovery and firm inflationary pressure coupled with high-interest rates have further weakened the pricing dynamic of several commodities, including Methyl Methacrylate.

According to ChemAnalyst, prices of Methyl Methacrylate have inched lower in the Chinese market as there are concerns over China's severe weather situation, which dampened the nascent demand recovery in the polymer market. The country has seen a recent situation of simultaneous floods and droughts which resulted in power outages, with fears of manufacturing operations being hit. Furthermore, the cost pressure from the feedstock Acetone was inadequate as its prices progressed in a downward trend in the given time frame. On the demand front, the inquiries from the downstream Polymethyl Methacrylate remained limited as automotive and construction consumption slowed down, weighing down the prices of Methyl Methacrylate in the domestic market. On the other side, double-digit declines in China's latest import and export figures and shrinking domestic manufacturing data reflect a continual fall in demand. As per the data, China's export slumped by 14.5% year on year to $281.8 bn, and a 12.4%-year n year dive in imports to around $ 201.2 bn, indicating a poor demand for finished goods in key regions such as Europe and US. Additionally, Zhong Meng Longxin Chem in Heilongjiang, China, having a production capacity of 75,000MT/year, has onstream its MMA facility in mid-July 2023, further improving the region's supply. Therefore, Methyl Methacrylate Ex- Qingdao prices were settled at USD 1500/MT with a week-on-week decrement of 3.5% during the week ending 11th August.

Similarly, Methyl Methacrylate prices have shown a prominent downturn in the European market as demand from Polymethyl Methacrylate industries has plummeted, aggravated by persistent inflationary pressure and the confluence of global economic challenges. Furthermore, the oversupplies of feedstock Acetone has limited the positive development of Methyl Methacrylate in the regional market. According to the latest finical reports from Arkema, a leading manufacturer of Methyl Methacrylate in France, Europe, net sales in the quarter second of 2023 showed a decrease of Euro 2.4 billion, down by 23%, compared to Q2 of 2022. This decline was primarily attributed to reduced volume due to subdued demand in most end markets and continued destocking. However, the automotive, battery, and energy markets nevertheless remained well-oriented.

Furthermore, the price effect is positive in most product lines but negative at the Group level given, as in the first quarter, the normalization of PVDF and upstream acrylics. In addition, the EBITDA of €417 million declined, compared with Q2 of 2022 (€705 million). While the EBITDA margin reached a very good level at 17.1%, signifying the quality of the Methyl Methacrylate portfolio and dynamic price and mix management.

As per the ChemAnalyst estimation, prices of Methyl Methacrylate are anticipated to decline in the Asian and European markets on account of tepid downstream demand. The cost pressure from upstream values is projected to decrease, leading to a decline in the prices of Methyl Methacrylate in the forthcoming weeks.