USGC (USA): At the end of Q2, heightened demand in the construction and automotive sectors, coupled with supply chain constraints and rising raw material costs, drove Meth Acrylic Acid (MAA) prices in the USA higher. The June warmer weather spurred activities in these sectors, leading to increased demand for MAA-based products like paints, coatings, and automotive refinishing materials. Lower inventory levels forced manufacturers and distributors to rely more heavily on spot purchases, further pushing prices higher. As a result, MAA prices rose to USD 2,410 per metric ton, reflecting an increase of USD 40 per MT or 1.7% from the previous month.

In June, MAA prices in the USA rose due to stable yet high costs of key raw materials like acetone cyanohydrin and sulfuric acid, driven by strong demand and production issues. Significant congestion at US container ports further strained the supply chain, causing shipping delays and soaring rates. By mid-June, many ships were waiting at anchor, particularly in Asian and European ports, exacerbating logistical challenges and contributing to higher production costs. In addition, the West Texas Intermediate (WTI) crude oil was at USD 82.69 per barrel. This rise was influenced by concerns over escalating conflicts in the Middle East, adding further pressure on the production costs of MAA.

Notably, Kodiak Chemicals, a leading provider of specialty chemicals, expanded its market presence through strategic acquisitions. In 2024, the company acquired Southern Adhesives and Coatings, enhancing its capabilities in the paper and packaging sectors. This acquisition complemented their earlier purchase of Aztech Lubricants, solidifying Kodiak's position as a comprehensive solutions provider.

Looking ahead to July, MAA prices were expected to recover further as feedstock acetone prices increased, coupled with a rise in spot crude oil prices. Positive price and cost pressures on MAA were anticipated due to higher crude and gas demand, especially from China and other countries as the summer slump ended. In conclusion, June saw an upward trend in MAA prices in the USA, driven by a mix of supply and demand factors, logistical challenges, and rising raw material costs. Domestic production and supply were expected to increase as supply chains re-oriented for new production cycles. However, raw materials like acetone cyanohydrin and sulfuric acid might see price increases in August due to higher demand or production issues, increasing overall production costs.

As per ChemAnalyst outlook for the coming months suggests continued price fluctuations of MAA influenced by seasonal demand, fluctuating crude oil prices, production issues, and global economic factors. Conversely, demand for MAA in the USA might decrease in September due to lower activity in paint and coatings production, influenced by monsoon seasons affecting construction projects. By the start of the last quarter, increased construction and renovation activity before harsh winter weather might drive up demand again.