MUMBAI (ChemAnalyst)-Low inventories and insufficient supply surged the prices of Polymethyl Methacrylate (PMMA) in the Asian market. Several PMMA producers reduced their production rates in their manufacturing plant due to a shortage of raw material Methyl Methacrylate (MMA) which disrupted the supply-demand dynamics. In Europe and the US, soaring energy values and accelerating crude and Natural gas costs remained the critical reasons for such a price trend.

In Asia, the contract price of MMA is observed to be hovering around USD 1850/ton-USD 1930/ton. As a result of surging covid cases in China, several MMA plants undergo unplanned shutdowns, which caused logistics and production disruptions resulting in prices shooting up. Mitsubishi Chemicals Methacrylate (MCM), which has a production capacity of 180KTPA in Shanghai, was shut down throughout April and ran at a low operating rate in May due to surging covid cases and supply disruptions. However, the downstream market remained bearish due to narrowing sales and revenue, forcing the producers to revise the prices.

In South Korea, the supply remained tight on the top of a significant turnaround in the domestic market. Healthy demand and insufficient product availability pressurized the producers to meet the requirement from the consumer’s end. Downstream cast sheet producers suffered from subdued demand during the Muslim Ramadan festival. Labor shortage and logistics constraints shrunk the profit margin of the primary producers of MMA in Vietnam. In India, the price of PMMA remains up trended due to supply shortage and boosting demand for the product from end-user cast sheet manufacturers.

According to ChemAnalyst, the price of Methyl Methacrylate is expected to surge in upcoming weeks due to supply shortage and insufficient product availability. Logistics constraints and surging transportation costs will be more likely to increase the prices for the overseas market. Plant turnaround and surging production costs will affect the market sentiments for the Asian region. In China, the market is expected to revive after Labor Day with increased production rates among the downstream ventures.