Methyl Meth Acrylate (MMA) prices in the U.S. remained stable during the first half of November 2024, driven by a combination of positive economic indicators, steady production levels, and balanced supply-demand fundamentals. Despite concerns in global markets and hesitation from buyers, the domestic market was supported by strong economic performance, particularly in the automotive sector, which is a key downstream user of MMA.

The U.S. economy showed resilience, with retail sales growing 0.4% in September, surpassing expectations, and GDP growth projections being revised upward. This positive economic backdrop provided a supportive environment for demand in sectors like construction, appliances, and automotive. However, MMA buyers were hesitant to commit to larger volumes due to uncertainties, including concerns around rising freight costs and the upcoming U.S. elections, which have created some ambiguity in the broader industrial outlook.

In the automotive industry, a major downstream sector for MMA, U.S. auto sales in November were expected to reach 1.31 million units, a 5-8%% increase compared to the previous year. The automotive sector, particularly in the context of rising inventories and an increase in retail sales, continued to reflect sustained consumer demand. Additionally, the share of battery electric vehicle (BEV) sales remained robust, surpassing 8% since June, which further contributed to MMA’s steady demand in the automotive industry. The anticipated growth in BEV sales was partly driven by potential federal EV incentives being phased out in 2025, driving interest in electric vehicle production and components, many of which require MMA.

On the supply side, MMA production remained stable with average operating rates for upstream acrylonitrile at around 60-70% in October 2024, which helped maintain equilibrium in the market. There was no significant pressure to drive prices up, as production levels continued to align with demand. Furthermore, the availability of domestic feedstocks in the U.S. played a key role in stabilizing the market. These feedstocks helped buffer the U.S. market from the price volatility seen in other regions, particularly Asia. The ongoing price differential between the U.S. and Asia, compounded by rising freight rates, kept U.S. MMA exports out of the Asian spot markets, ensuring that domestic prices remained stable.

In conclusion, the MMA market in the U.S. during the first half of November 2024 was characterized by a balance between stable demand from downstream industries like automotive and steady production levels. Despite external uncertainties, such as rising freight rates and geopolitical concerns, positive economic trends in the U.S., particularly in the automotive sector, helped maintain price stability in the MMA market.