For the Quarter Ending September 2024
North America
The third quarter of 2024 saw a notable uptrend in Methyl Methacrylate (MMA) prices across the North America region, driven by several contributing factors. Tight supply conditions, reduced operating rates, and lower import volumes created a constrained market, fueling bullish sentiments among producers.
In Mexico, the price surge was particularly significant, with the downstream Polymethyl Methacrylate (PMMA) industry playing a key role in driving demand and price increases. MMA prices in the region recorded a substantial 68% rise compared to the same quarter in 2023, showcasing the strong market momentum.
Furthermore, prices increased by 26% from the previous quarter, indicating a steady upward trend. This was particularly evident in the second half of the quarter, which experienced a 25% price hike compared to the first half, further emphasizing the strengthening market. By the end of Q3, MMA prices in Mexico reached USD 3410/MT CFR Manzanillo, reflecting the prevailing positive market conditions and continuous upward trajectory seen throughout the quarter.
APAC
The third quarter of 2024 witnessed a notable increase in Methyl Methacrylate (MMA) prices across the APAC region, driven by several pivotal factors. Limited supplies, attributed to reduced operating rates at manufacturing facilities, combined with sluggish demand from downstream industries such as Polymethyl Methacrylate (PMMA), and escalating feedstock Acetone costs, significantly influenced the market dynamics. These supply-demand imbalances fostered a bullish market sentiment, resulting in stable or slightly lower prices in some areas. In Japan, the price fluctuations were particularly pronounced, with a remarkable 32% increase compared to the same quarter last year. On a quarter-on-quarter basis, prices rose by 4%, and a comparison between the first and second halves of the quarter showed a 3% increase, further highlighting the upward trend. The quarter-ending price of USD 2100/MT for Methyl Methacrylate FOB Tokyo underscores the continued positive pricing environment in Japan, reflecting the overall increasing trend throughout the APAC region during Q3 2024.
Europe
In the third quarter of 2024, Methyl Methacrylate (MMA) prices in Europe experienced a modest increase of 0.8%, reaching USD 2550/MT CFR Antwerp by early September. This slight rise was attributed to a constrained supply, with reduced imports from Asia and low domestic production rates due to limited feedstock Acetone availability. Although the supply side remained tight, demand from key downstream sectors, including Polymethyl Methacrylate, automotive, and construction, was notably sluggish. Europe’s auto sales fell by 20.6% in August, contributing to dampened purchasing activity. The broader economic slowdown also weighed on consumer confidence, resulting in tepid buying interest for MMA. While supply is expected to improve slightly later in the quarter as production normalizes, demand recovery is uncertain. The subdued downstream consumption and lackluster construction sector activity are likely to keep demand soft in the near term. Despite the tight supply, market participants remain cautious, with hopes of a slight improvement in demand toward the end of September or early October.
South America
Throughout Q3 2024, the Methyl Meth Acrylate (MMA) pricing in the South America region has experienced a significant uptrend, with Brazil showcasing the most notable price changes. The market dynamics have been influenced by several key factors. Tight supply conditions due to reduced imports from major markets, low operating rates in exporting countries, and production disruptions have constrained the availability of MMA, leading to increased prices. Strong demand from downstream industries like Polymethyl Methacrylate, particularly in the automotive and construction sectors, has further bolstered the market sentiment. The correlation between supply shortages and rising demand has propelled the price escalation. In Brazil specifically, the pricing environment has been characterized by a consistent upward trajectory. The quarter saw a substantial 67% increase from the same period last year, demonstrating the significant price growth. Moreover, compared to the previous quarter in 2024, prices surged by 26%, indicating a rapid escalation in a short timeframe. Notably, there was a substantial 25% price difference between the first and second half of the quarter, underlining the dynamic nature of the market. As Q3 drew to a close, the latest price for Methyl Meth Acrylate (MMA) CFR Santos in Brazil stood at USD 3440/MT, reflecting the prevailing positive pricing environment.
For the Quarter Ending June 2024
North America
Throughout the second quarter of 2024, Methyl Methacrylate prices have remained on a firm note across the US market, with supply constraints coming to the fore and mitigating the impact of weak raw material prices in the domestic market. The domestic demand for MMA from the downstream Polymethyl Methacrylate (PMMA) industry has increased as consumption from the automotive sector has improved, leading to an upward shift in the price realization of MMA. As per the market sources, US new vehicle sales of 1,444,543 units for May represented an increase of 8.8% in April while 5.0% from one year ago in May 2023, with gains primarily from domestic sales as sales of overseas vehicles softened.
Furthermore, a major producer of downstream PMMA, Rohm significantly expanded its production capacity at the Wallingford plant in Connecticut (USA) in June 2024 to strengthen the market position of its specialty PMMA moulding compounds. The innovative improvement was possible by modifying and redeploying an existing production line at the Wallingford site, providing customers with faster delivery and meeting increasing demand globally. Consequently, demand for MMA has also boosted as MMA is the major raw material for PMMA.
However, feedstock has showcased mixed signals throughout the month. On the macroeconomic front, the annual inflation in the US slowed to 3.3% in May 2024, below 3.4% in April but still above the hope of the Federal Reserve which is 2%. On the supply side, the material availability was limited as the operating rates of MMA continued to be extremely low and a structural return to more normal operating rate levels is not expected in the coming quarter. Moreover, several market participants speculate, that the upcoming hurricane season as well as other weather disruptions will impede the production and logistic activities and is likely to exacerbate the further short supply situation of MMA in the domestic market. Thus, prices of Methyl Methacrylate FOB USGC were settled at USD 2488/MT during June 2024.
Asia- Pacific
The prices of Methyl Methacrylate have inched higher in the South Korean market during the second quarter of 2024 owing to limited inventories. The cost support from feedstock was sufficient on Methyl Methacrylate as its prices increased throughout the month which supported the prices to follow an uptrend in the domestic market. Additionally, demand for Methyl Methacrylate from the downstream Polymethyl Methacrylate was largely stable in the domestic market. Most market transactions were mainly based on a need-on-demand basis. At the same time, inquiries from the overseas market have been observed on the higher end in the midst of restocking and concern about supply disruption which further promoted the manufacturers of Methyl Methacrylate to raise their export prices. As per the market source, overall South Korea's May export to China increased by 7.6% year on year to $ 11.4 billion, the highest in 19 months, while shipments to the US increased at a faster rate of 15.6% to $10.9 billion. On the macroeconomic front, South Korea's inflation rate slowed to a 10-month low in May but remained above the central bank 2.0% target, likely reinforcing views that the bank is in no rush to start easing its monetary policy. Additionally, the availability of Methyl Methacrylate was limited as production of Methyl Methacrylate has been hampered due to the restricted supply of raw material in the domestic market. Moreover, several manufacturing firms have been operating at reduced rates in the domestic market, resulting in a supply shortage in the domestic market. Therefore, prices of Methyl Methacrylate FOB Busan were settled at USD 2105/MT during June 2024.
Europe
Prices of Methyl Methacrylate have continued to rise across the German market during the second quarter of 2024 as major producer Rohm has increased the prices of Methyl Methacrylate. However, feedstock prices decreased throughout the quarter, though it had a limited impact on the prices of Methyl Methacrylate. In addition, the demand for Methyl Methacrylate from the downstream PMMA has improved due to a rise in consumption from the end-user automotive industry, leading to an upward shift in the price realization of Methyl Methacrylate. In the broader economic context, German inflation fell more than expected in June, resuming its downward trend after two consecutive months of increases, and leaving the door open for another rate cut by the European Central Bank in September. According to preliminary data from the Federal Statistics Office, inflation eased to 2.5% in June, down from 2.8% in May. On the other hand, the European Central Bank reduced its interest rates by 25 basis points on June 12. This was the first decrease in interest rates since 2019. The decline in inflation rates has further improved consumer buying sentiments. Regarding domestic production, manufacturing firms have been operating at reduced rates in the wake of economic uncertainties. The material availability was limited to meet the downstream demand, keeping the prices upward in the domestic market. At the same time, imports from the Asian market have also turned costly amid tight supply which resulted in the high imported prices of Methyl Methacrylate. Additionally, spot ocean freight charges from Asia to Europe surged well ahead of contract rates as vessel capacity tightened even more owing to the ongoing Red Sea crisis. As per the market sources, freight charges from Asia to North Europe were settled at $4,000/FEU following adverse weather and congestion at the Asian ports.
South America
Prices of Methyl Methacrylate have continued to rise in the Brazil market during the second quarter of 2024 supported by limited inventories. However, domestic demand for Methyl Methacrylate from the downstream Polymethyl Methacrylate industry has been muted throughout the quarter. The market player report, the consumption from the end-user automotive and construction sector has been slowed down across the domestic market. According to the sector association of ANFAVEA, the automotive production in Brazil reached 166,700 units in May, 24.9 percent less than in April and 26.8 percent in May 2023, consequently dampening the demand for MMA in the domestic market. On the macroeconomic front, Brazil’s annual inflation picked up more than expected in May, reflecting the damage from recent disastrous floods in the south. The firm inflationary pressure has further eroded the purchasing power of consumers. Although, Brazil's economy rebounded in the first quarter from a sluggish second half of 2023 on stronger investments, adding to caution at the central bank, which has slowed the pace of interest-rate cuts. Additionally, shipments of Methyl Methacrylate from the Asian markets have been delayed owing to severe congestion at the Key Asian ports in May which resulted in a supply shortage in the Brazil domestic market. Furthermore, market players speculate that the congestion is expected to last through Q3 of 2024 and is likely to exacerbate the further short-supply situation of Methyl Methacrylate material in Brazil. Thus, prices of MMA CFR Santos were settled at USD 2574/MT with a month-on-month increment of 7.0% during June 2024.
For the Quarter Ending March 2024
North- America
Methyl Methacrylate (MMA) prices have showcased fluctuating trends across the US market during the first quarter of 2024. During the initial of Q1 2024, MMA prices have inched lower in the domestic market. However, feedstock Acetone prices have increased throughout the month, but it had a limited bearing on the prices of MMA in the domestic market.
In addition, demand for MMA from the downstream Polymethyl Methacrylate was soft due to macroeconomic headwinds which weighed down the prices of MMA in the domestic market. However, towards the end of Q1 2024, MMA prices started to rise due to the reduced operating rates in the previous month amidst the holiday season, and tepid demand has led to restricted availability of MMA. As a result, to gain profit margins, the manufacturers have raised their offers. In addition, demand from the downstream PMMA has increased due to a rise in consumption from the automotive and construction.
Apart from this, shipping disruptions in the Red Sea, along with traffic constraints in the Panama Canal and deep-freezing temperatures in the US, impacted the supply of MMA within the domestic market. As a result, prices of MMA operated at a high level. In addition, Mitsubishi Chemical America could make a final investment decision (FID) on a new methyl methacrylate (MMA) plant in the US in the second quarter, with start-up possible in 2028.
Asia- Pacific
Methyl Methacrylate (MMA) prices have shown a see-saw trend in the Asian market during the first quarter of 2024. During January 2024, MMA prices have inched higher in the Japanese market. The feedstock Acetone prices have increased, resulting in the high production cost of Methyl Methacrylate, supporting the prices to follow an uptrend in the domestic market. Furthermore, on January 1, 2024, a strong earthquake of magnitude 7.6 occurred near the Noto Peninsula in Ishikawa Prefecture, Japan impacted the production and industrial activity of Methyl Methacrylate, thus hampering the supply of Methyl methacrylate within the domestic market. However, in the midst of off-season dullness and tepidness in the global economy, the demand for Methyl Methacrylate from the domestic and international markets has been underwhelming and thus, the pace of inquiries from the downstream Polymethyl Methacrylate industry has remained subdued due to slow consumption from the end-user automotive and construction sector. As a result, prices of MMA have been observed on the lower end during February 2024. However, MMA prices have unexpectedly increased during March 2024 due to the high-cost pressure from feedstock Acetone. In addition, the manufacturing firms have been operating at low rates, leading to the limited stock of Methyl Methacrylate within the domestic market. Moreover, the involvement of Yemen's Houthi group in incidents concerning commercial ships at the southern end of the Red Sea has disrupted transportation routes which further encouraged the manufacturers to raise their MMA prices.
Europe
Methyl Methacrylate (MMA) prices have witnessed a mixed trend in the European market during the first quarter of 2024. In early Q1 2024, persistent downward pressure lingers across the German MMA market supported by a lack of demand recovery in key consumer industries. The cost support from feedstock Acetone was limited to MMA as its prices settled on the lower end, supporting the prices to follow a downward trend in the domestic market. Furthermore, the persistent inflation and high-interest rates have dampened the purchasing power of consumers and deteriorated the market fundamentals of MMA in the domestic market. Meanwhile, demand from the downstream Polymethyl Methacrylate industry has remained average in the domestic market due to less consumption from the construction sector which weighed down the prices of MMA. However, MMA prices have recovered towards the end of Q1 of 2024. The feedstock Acetone prices have strengthened followed by strong crude oil prices which resulted in the high production cost of MMA in the domestic market. Furthermore, the supply of MMA was limited as major producer Rohm had declared shipping limitations for Methyl Methacrylate due to a planned turnaround in Worms and the Easter holiday, further supporting the prices to follow an uptrend in the domestic market. Moreover, demand from the downstream Polymethyl Methacrylate was improved marginally as consumption from the automotive sector has rebounded within the domestic market.
South- America
Methyl Methacrylate (MMA) prices have demonstrated a mixed bag in the South- American market during the first quarter of 2024. During the first half of Q1 2024, MMA prices have witnessed a bearish rally in the Brazilian market. The inquiries from the downstream Polymethyl Methacrylate industry have remained weak with limited instances of new orders reported by the market players, leading to the downward shift in the price realization of MMA in the domestic market. In addition, Buyers are waiting for more clarity amid the ongoing war and growing economic problems. On the other side, Brazil’s monthly inflation probably sped up in December which eroded the purchasing power of end-users and further deteriorated the market sentiments of MMA. However, in the second half of Q1 2024, MMA prices gained an upward momentum as prices increased in the exporting market. Furthermore, the demand from the downstream PMMA has recovered due to a rise in consumption from the automotive and construction sector which boosted the prices of MMA in the domestic market. According to ANFAVEA, New vehicle sales in Brazil surged by 13.6% from the prior month to 188 thousand units in March 2024, after rising by 2.2% in the previous month. Meanwhile, imports from the US have turned costly as prices increased in the exporting market which in turn led to high import prices of MMA in the Brazil market. Furthermore, as a result of ongoing convoy transit restrictions due to lower water levels in the Panama Canal and safety concerns in the Red Sea, voyages are being rerouted through alternative routes, leading to increased transit times. Overall, low inventory levels at several warehouses also stayed behind the cautiously improving demand.
For the Quarter Ending December 2023
North- America-
Prices of Methyl Methacrylate have persistently increased in the US market during the fourth quarter of 2023. As a major producer, Roehm in Darmstadt, Germany, has raised prices for Methyl Methacrylate (MMA) and other Methacrylate monomer products in the United States that is effective from 1st November 2023. Similarly, another manufacturer of Methyl Methacrylate, Mitsubishi Chemical Methacrylate (MCM) has also independently announced a price increase in November. These pricing adjustments cast light on the obscured challenges that companies operating in the Methacrylate market, particularly within the United States, are currently confronting.
The cost support from feedstock Acetone was sufficient on Methyl Methacrylate as its prices settled on the higher side in the domestic market. These supported the prices to follow an upward trend in the domestic market.
The demand for Methyl Methacrylate from downstream Polymethyl Methacrylate has been rising and the same can be seen in the prices of PMMA, thus the consumption of MMA has been firm in the domestic market. The performance of the construction industry has been firm and continues to strengthen on the back of improved housing output. Therefore, prices of Methyl Methacrylate operated at a high level in the domestic market.
Asia-Pacific-
Throughout the fourth quarter of 2023, Methyl Methacrylate prices have consistently faced declines in the South Korean market. The bearish market sentiments can be attributed to subdued demand from the downstream Polymethyl Methacrylate industry. With limited transactions occurring in the downstream market, domestic inventory levels have risen, leading manufacturers to adjust their quotations downward.
Concurrently, South Korean inflation saw an uptick, reaching 3.8% in October, surpassing the target set by central banks. This rise in inflation has negatively impacted the purchasing power of end-use industries. Despite the conclusion of the Golden Week Holidays in China, demand remained sluggish due to the lackluster performance of the downstream industry. Market sources reported a 9.5% year-on-year drop in shipments to China, South Korea's largest export market, reflecting weaknesses in the world's second-largest economy.
Regarding raw materials, the impact of cost pressure from feedstock Acetone on Methyl Methacrylate was limited, as Acetone prices settled at the lower end during the specified time frame, thereby supporting the prevailing price trend of Methyl Methacrylate in the domestic market. Additionally, despite OPEC cuts and tensions in the Middle East, South Korea maintained strong trade relations with major Persian Gulf oil producers, evident in the increased imports of sour crude from Saudi Arabia, the UAE, and Qatar. This dynamic effectively supplemented manufacturing firms, including those producing Methyl Methacrylate.
Furthermore, inventories have accumulated domestically due to a consumption slowdown, placing added pressure on producers to clear their inventories as the year-end approaches.
Europe-
Prices of Methyl Methacrylate have witnessed a bullish trend in the German market during the fourth quarter of 2023. The feedstock Acetone prices have increased which resulted in the high production cost of Methyl Methacrylate in the domestic market. These supported the prices to follow an upward trend in the domestic market.
However, demand for Methyl Methacrylate from the downstream Polymethyl Methacrylate has remained subdued in the domestic market. The consumption of Polymethyl Methacrylate from the automotive, and construction sectors has been slowed down amid macroeconomic headwinds and low seasonality, but it was insufficient to drive the price realizations of Methyl Methacrylate at the lower side in the domestic market.
In addition, the operating rate of the manufacturing firm has been low since Q3 of 2023 as demand from the downstream industry has not improved yet. Moreover, the German manufacturing Purchasing Manger Index remained in the contraction zone, which is below 50, mirroring a deterioration in industrial and production activity. According to federal statistics, German industrial production unexpectedly decreased by 0.7% in November 2023. Market players speculate economic uncertainty and weak operating rates are expected to limit prospects for an MMA recovery in 2024. Due to low production activities, the material availability was limited to cater to overall downstream demand which encouraged the manufacturers to raise their offers throughout the quarter. On the other hand, following increased attacks by the Iran-backed Houthis, the world's largest shipping companies are avoiding the Red Sea and Suez Canal. This avoidance is expected to cause shipping delays, which will subsequently impact container ports across Europe.
South America-
Methyl Methacrylate prices in the South American market experienced fluctuations during the fourth quarter of 2023. Initially, in the beginning of Q4, prices in the Brazilian market declined due to abundant material availability domestically and through imports. The influence of lower Acetone prices, a key feedstock, had a limited impact on Methyl Methacrylate prices during this period. Market reports indicated a moderate demand for Methyl Methacrylate from the domestic Polymethyl Methacrylate industry, with transactions primarily based on immediate needs. Steady imports from the US contributed to a supply-dominated market, supporting the prevailing price trend of Methyl Methacrylate in the domestic market.
Towards the end of Q4 2023, Methyl Methacrylate prices saw an upward trend in the domestic market. This shift was attributed to an increase in feedstock Acetone prices, leading to higher production costs for Methyl Methacrylate. Consequently, manufacturers made slight adjustments to their prices. Despite tepid demand from the downstream Polymethyl Methacrylate industry, driven by a slowdown in the automotive and construction sectors, the market did not witness a significant decrease in Methyl Methacrylate prices due to these factors.
Moreover, imports from the US dwindled towards the end of Q4, as the supply was affected by low water levels in the Panama Canal, impacting the availability of Methyl Methacrylate in the Brazilian market. Overall, limited material availability in Brazilian ports or the market is anticipated to persist until the year-end. Festive holidays are expected to further dampen production rates and constrain market volumes.
For the Quarter Ending September 2023
North America
The prices of Methyl Methacrylate have demonstrated a downward trend across the US market throughout the third quarter of 2023. However, feedstock Acetone prices have shown an oscillating trend throughout the quarter. On the other hand, according to the US Bureau of Labor Statistics, the annual inflation rate in the US accelerated for a second straight month to 3.7% in August from 3.2% in July on the back of high energy prices. This rise in inflationary pressures has further taken a toll on the purchasing sentiments of the end-use industries. Meanwhile, demand for Methyl Methacrylate from downstream Polymethyl Methacrylate has remained steady in the domestic market. The downstream procurements were mainly based on a need-on-demand basis. In addition, the manufacturing firms were operating at stable rates as demand from the downstream industry had not fully recovered in the domestic market. In addition, the US manufacturing purchasing manager index remained in the contraction zone. Furthermore, the availability of finished stock of MMA was sufficient to cater to overall demand, which weighed down the prices of Methyl Methacrylate in the domestic market.
Asia- Pacific
Prices of Methyl Methacrylate have witnessed an oscillating trend across the Asian market throughout the third quarter of 2023. During the initial of Q3, prices of Methyl Methacrylate have demonstrated an upward trend in the South Korean market on account of a bullish buying trend in the domestic market. The high feedstock Acetone prices resulted in the high production cost of Methyl Methacrylate. On the demand front, the inquiries from the downstream Polymethyl Methacrylate industry have increased due to a rise in consumption from the end-user automotive and construction industry, which strengthened the prices of Methyl Methacrylate in the domestic market. However, during the middle of Q3, MMA prices have inched lower due to weak demand from both the domestic and international markets. Furthermore, South Korea's chemical exports in September dropped by 6.1% year on year to $ 3.82 bn, indicating a lukewarm global demand. Although, towards the end of Q3, MMA prices have gained pace. The latest production cuts announced by Saudi Arabia and Russia supported oil prices, extending their respective ongoing production and export cuts through the end of the year. Brent crude oil closed at USD 90/b while WTI crossed USD 85/b, which supported the aromatics prices in the optimistic direction. This has resulted in firm prices of upstream Acetone and culminated in increasing the cost of production of Methyl Methacrylate in the domestic market.
Europe
Prices of Methyl Methacrylate (MMA) have witnessed mixed trends across the European market during the third quarter of 2023. During the initial and mid of Q3, MMA prices have inched lower in the German market on account of bearish buying trends in the domestic market. The feedstock Acetone prices have decreased, resulting in the low production cost of MMA in the domestic market. Meanwhile, cheap competitive offers from the Asian market have further pressured the prices of MMA. On the other side, the firm inflationary pressure and high interest rates by the central bank have deteriorated the purchasing power of end-users. Meanwhile, demand for MMA from downstream PMMA industries has remained lackluster. The weak demand has kept exerting pressure on the seller's side as buyers either made limited purchases when needed or stayed in a wait-and-see perspective in the projection of additional decline. The worsening in downstream demand could be attributed to underperforming end businesses and economic uncertainties across the globe. However, toward the end of Q3, MMA prices have gained an upward momentum in the domestic market. Upstream crude oil prices have continued to rise due to production cuts by Saudi Arabia and Russia; consequently, the rise in feedstock Acetone prices has culminated in the increased cost support for MMA. Although demand has remained dull, it was insufficient to drive the prices of MMA in the domestic market.
South- America
Prices of Methyl Methacrylate have showcased a downward trend in the Brazilian market during the third quarter of 2023. The spiraling inflationary pressure and high interest have deteriorated the purchasing power of consumers. Meanwhile, demand for Methyl Methacrylate from the downstream Polymethyl Methacrylate has remained dull, which weighed down the prices of MMA in the domestic market. The market transactions were relatively light as the enthusiasm of the terminal firm to enter the market was not strong. Furthermore, According to Associacao Nacional dos Fabricantes de Veiculos Automores (ANFAVEA), Brazil vehicle sales reached 198,000 units in September 2023, 4.8 percent less than in August 2023 and 1.9 percent more than in September 2022, resulting in a low consumption of Methyl Methacrylate in the domestic market. On the other side, the imports from the exporting market, the USA, have remained steady in the Brazilian ports or market, which led to high material availability in the domestic market. Overall, there were no port congestion or supply chain disruption was reported by market participants in the given time frame.
For the Quarter Ending June 2023
North America
Methyl Methacrylate prices have shown mixed sentiments in the US market during the second quarter of 2023. During the initial and mid of Q2, MMA prices have inched higher in the domestic market, backed by high demand and limited material availability. The high inflationary pressure and rising interest rates have impacted the purchasing power of end-users. Despite the economic uncertainties, the inquiries from the downstream PMMA industries have increased as consumption from the end-user automotive industries has improved, pushing up the prices in the domestic market. At the same time, consumption from the overseas market has also increased, which promoted the manufacturers to increase their prices to gain some profit margins. On the other side, the US Ports of Long Beach and Los Angeles have witnessed a shortage of laborers and dockworkers, which eventually led to the shutdown of the ports, resulting in restrained inventories in the US market. However, towards the end of Q2, MMA prices decreased due to moderate demand from the downstream PMMA sectors. The downstream procurements were mainly based on immediate requirements reported by market participants. The oversupplies of feedstock Acetone have impacted the positive development of MMA in the domestic market. Therefore, MMA prices operated at a low level. Additionally, a major manufacturer of Methyl Methacrylate, Roehm America, having a production capacity of 160,00 MT/Year, announced that it will be closing its facility in Westwego, Louisiana, plant in June 2025.
Asia- Pacific
Methyl Methacrylate prices have increased in the South Korean market throughout the second quarter of 2023 due to improved buying trends among the end-users. Although, feedstock Acetone prices showed fluctuation throughout the quarter. The inquiries from the downstream PMMA sectors have increased as consumption from the automotive and construction have improved, which pushed up the prices of MMA in the domestic market. The market transactions were high as the enthusiasm of the terminal firm to enter the market was strong, as reported by market players. In addition, the operating rates remained high in the domestic market on account of increased downstream demand. The availability of finished stocks of PMMA was adequate to cater to the overall downstream demand. Overall, high downstream demand promoted the manufacturers to keep their prices in an upward trend in the domestic market. Although, towards the end of Q2, MMA prices have shown stagnancy with marginal increment backed by moderate demand and sufficient inventories in the domestic market. Furthermore, South Korea's inflation rate dropped from 3.3% in May to 2.7% in June, which strengthened the purchasing power of end-use industries.
Europe
Methyl Methacrylate (MMA) prices have continued to drop in the German market throughout the second quarter of 2023 owing to tepid demand and sufficient inventories. Although, feedstock Acetone prices have shown fluctuations during the quarter. The firm inflation rates and consequent rise in interest rates to contain it had a heavy toll on the demand fundamentals. As per the sources, inflation in Germany increased in June to 6.4% year-on-year, from 6.1% YoY in May, further pressuring the purchasing power of the end-use industries. Meanwhile, the inquiries from the downstream Polymethyl Methacrylate sector remained soft, resulting in decreasing consumption rates, supporting the downshift in the prices of MMA in the domestic market. Additionally, the operating rates remained under pressure in the domestic market while the steady inflows of cheap imports from the Asian and other exporting nations have led to sufficient inventories in the domestic market. Moreover, a major manufacturer of MMA, Rohm in Wesseling, has shut down its MMA plant amid maintenance turnarounds, although it had not impacted the prices of MMA as there were sufficient inventories in the domestic market.
South America
Methyl Methacrylate prices have increased in the Brazilian market throughout the second quarter of 2023 owing to improved buying trends among the end-users. The inquiries from the downstream PMMA sectors have remained active as consumption from the automotive and construction (end-users) sector have increased, which strengthened the prices of Methyl Methacrylate in the domestic market. The market transactions were relatively strong, reported by the market participants. In addition, imports from the US have remained slow at the Brazilian ports as the US Ports of Long Beach and Los Angeles have witnessed a shortage of labor and dockworkers, which eventually led to the shutdown of the ports. Furthermore, the availability of finished stocks of MMA was inadequate in the domestic market. However, towards the end of the quarter, the supply improved as US ports operated normally without any congestion. Moreover, as per the sources, Brazil's inflation rate declined from 3.94% in May to 3.16% in June, the lowest since September 2020 and broadly in line with market forecasts, which further strengthened the purchasing power of the end-user sector.
For the Quarter Ending March 2023
North America
In the USA market, MMA prices have shown fluctuation during the first quarter of 2023. During the initial and mid of Q1, MMA prices showed upward stagnancy due to stable demand from the downstream PMMA industries while the supplies remained sufficient to cater to overall demand. Additionally, production cost has remained stable as upstream natural gas prices dropped in the domestic market. Furthermore, a major manufacturer of MMA Dow Chemical in Deer Park, Texas, USA, with a production capacity of 475,000 mt/year, has shut down their MMA plant during the mid-Feburary due to maintenance turnaround. Although, at the final of Q1, MMA prices decreased in the domestic market due to sluggish demand sentiments and ample material availability in the market. Furthermore, the US market has witnessed a drop in new orders, as reported by the market participants. Overall, demand from downstream value chains PMMA has remained subdued from the domestic and overseas markets. At the same time, PMI has dropped below 50 (i.e., 47.3), signifying a contraction in manufacturing and industrial activity. Thus, MMA prices showed a downward trend in the domestic market.
Asia- Pacific
Prices of MMA have shown mixed sentiments in China during the first quarter of 2023. During January and February, MMA prices increased after the New Year holidays as market participants restocked the material available in the domestic market. Although, demand for MMA from the downstream PMMA industries has remained stagnant. Market participants reported fewer inquiries from the end users. On the other hand, China's PMI rose from 50.1 to 52.6 in February, signifying an increment in both industrial and production activities. Although, during March, MMA prices declined in the domestic market due to dull buying sentiments coupled with ample availability of material. In addition, demand for MMA from the downstream PMMA industries has remained gloomy, which further weighed down the prices of MMA in the domestic market. At the same time, the imports from South Korea and Japan have remained steady, which resulted in adequate material availability in the Chinese ports or market.
Europe
Throughout the first quarter of 2023, Methyl Methacrylate (MMA) prices have increased significantly in the European market on account of improved buying sentiments in the region. Operating rates have increased in the wake of improved consumption from the downstream industries. In addition, raw material Acetone prices have increased, which resulted in the high production cost of MMA in the regional market. Furthermore, Rohm (a major manufacturer of MMA) has increased run rates at its European plant in worms and Wesseling to accommodate the demand going into 2023. On the other side, demand for MMA from the downstream PMMA industries has risen slightly, thus strengthening the prices of MMA in the regional market.
For the Quarter Ending December 2022
USA
The price trend of Methyl Methacrylate fluctuated in the USA market during the fourth quarter of 2022. During the initial and mid-Q4 of 2022, MMA prices showed stability on the back of stable demand and supply dynamics. Additionally, domestic production costs remained stable as Natural gas prices fell after observing a sharp surge in Q3. Supply chains have strengthened in the last few weeks easing overall supply dynamics in the US market. Although, during the final quarter, MMA prices declined by 2.0% due to the sluggish performance of the downstream Polymethyl Methacrylate industry. The weak price trend of upstream Acetone Cyanohydrin contributed to the downward pricing trend for Methyl Methacrylate in the domestic market. Despite the lower operation rates, the sufficient inventory levels in the domestic market helped to decline the Methyl Methacrylate cost. Furthermore, the manufacturer was forced to lower their prices in the domestic market due to end consumers' wait-and-buy sentiments amidst inflation. In conclusion, prices of Methyl Methacrylate FOB USGC were assessed at USD 2257/MT during December 2022.
Asia- Pacific
Methyl Methacrylate prices showed a downward trend in the Chinese market throughout the fourth quarter of 2022, with shrinking profit margins among the producers. Sufficient inventory levels coupled with gloomy demand have led to the price drop of the MMA. In addition, the ongoing lockdown measures in some cities of China amid rising pandemic cases lead to uncertainties in production, operation, and logistics. This exerted downward pressure on the end-user demand. Overall, consumption from downstream PMMA industries has continued to remain on the weak side. Most buyers have curtailed their MMA offtake and taken a wait-and-see attitude, but MMA prices continue to decrease. Thus, as a result, prices of MMA Ex- Qingdao were assessed at USD 1421/MT in December.
Europe
The prices of Methyl Methacrylate have witnessed mixed sentiments in the German market throughout the fourth quarter of 2022. During the initial Q4, Methyl Methacrylate prices showed an upward trend, supported by the limited supplies in the market. The domestic production cost has remained high amid soaring energy and operating costs, resulting in weak output rates. However, the speculation of recession across the European market has dampened the demand from the downstream PMMA sector. Although, during the mid and final quarter of Q4, prices of Methyl Methacrylate declined on the back of sufficient inventory level. Meanwhile, the supply has been supported by the cheap imported material, resulting in the price drop. In addition, the major manufacturer of Methyl Methacrylate Rohm in Worms, Germany, has extended the shutdown of several MMA monomer production units till November due to low market demand in the region. Hence, as a result, prices of Methyl Methacrylate plunged by 5.6% during December.
For the Quarter Ending September 2022
North America
Methyl Methacrylate price has showcased a downward trajectory in the North- American region during the third quarter of 2022. In early, the market remained quiet as the country celebrated Independence Day, which resulted in reduced production of Methyl Methacrylate in the US market. Furthermore, the continuous decline in the feedstock Acetone Cyanohydrin prices has negatively impacted the MMA prices across the regional market. Despite the spiked electricity prices, the market dynamics of the product remained on the lower end due to the demand decline in the US market. In addition, production rates remained optimum despite stable consumption rates in the domestic market. Furthermore, the high inflation rate has dampened the demand from the downstream Polymethyl Methacrylate industries. At the same time, demand from the overseas market has also remained poor as European countries continued to face weak consumer sentiment amid ongoing uncertainty. Thus, prices of Methyl Methacrylate FOB UGSC were quoted at USD 2292/MT during September 2022.
Asia- Pacific
The price trend of Methyl Methacrylate fluctuated in the Asia- Pacific region during the third quarter of 2022. During initial and mid-Q3 2022, MMA prices plunged in the China domestic market. Equipment maintenance, and extreme weather, add to concerns about a slowdown in the prices of Methyl Methacrylate. Demand from the downstream derivative Polymethyl Methacrylate industries has been bearish, diminished by the weak consumer sentiments resulting from the recession and tardy economy. Most buyers attended to de-stock considering the tumbling market situation, which has supported the prices following a downtrend in the domestic market. However, prices were improved due to the increment in the polymer factory prices, which convinced the Methyl Methacrylate merchants to push the prices slightly upwards during the end of Q3. The energy and power crisis was causing the increase in operating costs of Methyl Methacrylate (MMA). Demand from the downstream PMMA industries has slightly improved. In addition, Huizhou MMA, Huizhou Guangdong China, having a capacity of around 90,000mt/year, has shut down its plant due to the maintenance turnaround. Prices of MMA Ex- Qingdao Prices were assessed at USD 1870/MT during September 2022.
Europe
The price trend of Methyl Methacrylate (MMA) has showcased a see-saw trend in the German domestic market throughout the third Quarter of 2022. During the initial Q3, Methyl Methacrylate showed a downward stagnancy, supported by ample inventory level and stable to weak demand from the downstream industries. However, in the middle of the third quarter, prices of MMA slightly rebounded amid low inventory levels. The latest price increase was attributed to the high cost of domestic production amid mounting energy prices. In addition, demand from the downstream derivative Polymethyl Methacrylate industries has remained stable to weak. Although, towards the end of the third quarter, prices dropped as market players reported that the downturn in business activities of the downstream Polymethyl Methacrylate sector has deepened as higher energy costs hit Europe's largest economy, Germany, and a drop has been observed in new orders. In addition, the steady flow of cheaper imports from the Asian and North American regions is an alternative for buyers, which has other facts for the price drop in Methyl Methacrylate. Furthermore, the major producer of Methyl Methacrylate, Roehm, in Germany, has reduced its operating rates in response to weak demand and high energy costs. Hence, as a result, prices of Methyl Methacrylate plunged by around 3% during September 2022.
For the Quarter Ending June 2022
North America
The Methyl Methacrylate market has been termed firm in the North American region owing to intense cost pressure from upstream feedstocks and stable demand from downstream industries. On the supply side, the Methyl Methacrylate market in the US remains constrained. As a result, the supply remains disrupted. Also, low operating rates, maintenance shutdowns, and the tight supply of raw material hydrogen cyanide (HCN) have impacted the prices of Methyl Methacrylate. Furthermore, high energy costs and Natural gas prices further put inflationary pressure on the Methyl Methacrylate market. On-demand side, consumption from the construction and automotive sectors remained stable.
Asia- Pacific
In China, the Methyl Methacrylate market showed an upward trajectory during the second quarter of 2022 due to the limited availability of the product in the domestic market. In addition, escalating crude oil prices supported by geopolitical tensions between Russia and Ukraine impacted raw material prices, especially Methanol and Methacrylic acid, which put pressure on MMA prices. In addition, end-user demand for PMMA production has increased, resulting in high MMA prices in the domestic market. On the supply side, the war has created a severe problem in the supply chain. China's strict measures to control the Covid-19 epidemic caused logistical disruptions, resulting in supply shortages for the Chinese market. However, the market sentiment of Methyl Methacrylate showed stagnancy in May, backed by the demand stable due to ample supply. Additionally, customers were hesitant to stock up in late April ahead of Labour Day. Although, prices recovered in June amid rising costs of raw materials and improved demand from downstream industries. In June, the price of CFR Methyl Methacrylate settled at USD1980/ MT.
Europe
During the second quarter of 2022, Methyl Methacrylate has witnessed mixed sentiments in Europe. In addition, Due to lower production rates, Methyl Methacrylate prices in the European market climbed during April. In addition, production and operating rates were restricted as upstream energy costs shot up. Logistical issues coupled with a scarcity of suppliers drove higher Methyl Methacrylate costs across the regional market. Furthermore, rising demand and favorable buying sentiments in the downstream construction and for the fabrication of Polymethyl Methacrylate have maintained the upward trend. Although, in the last month of the quarter, Methyl Methacrylate prices have declined, backed by ample availability combined with fragile demand from the downstream automotive sectors. Furthermore, the rising raw material cost, energy prices, and supply disruption have resulted in the weak demand for the product, curtailing the manufacturing output growth in Europe. As a ripple effect, prices of Methyl Methacrylate dropped by 2.0% throughout June.
For the Quarter Ending June 2022
North America
The Methyl Methacrylate market has been termed firm in the North American region owing to intense cost pressure from upstream feedstocks and stable demand from downstream industries. On the supply side, the Methyl Methacrylate (MMA) market in the United States remains limited. As a result, the supply remains disrupted. Also, low operating rates, maintenance shutdowns, and the tight supply of raw material Hydrogen Cyanide (HCN) have impacted the prices of Methyl Methacrylate. Furthermore, high energy costs and Natural gas prices further put inflationary pressure on the Methyl Methacrylate market. On-demand side, consumption from the construction and automotive sectors remained stable. As a ripple effect, costs of Methyl Methacrylate FOB UGSC were assessed at around USD 2456/MT during June.
Asia- Pacific
In China, the Methyl Methacrylate market showed an upward trajectory during the second quarter of 2022 due to the limited availability of the product in the domestic market. In addition, escalating crude oil prices supported by geopolitical tensions between Russia and Ukraine impacted raw material prices, especially Methanol and Methacrylic acid, which put pressure on MMA prices. In addition, end-user demand for PMMA production has increased, resulting in high MMA prices in the domestic market. On the supply side, the war has created a severe problem in the supply chain. China's strict measures to control the Covid-19 epidemic caused logistical disruptions, resulting in supply shortages for the Chinese market. However, the market sentiment of Methyl Methacrylate showed stagnancy in May, backed by the demand stable due to ample supply. Additionally, customers were hesitant to stock up in late April ahead of Labour Day. Although, prices recovered in June amid rising costs of raw materials and improved demand from downstream industries. In June, the price of CFR Methyl Methacrylate settled at USD1980/ MT.
Europe
During the second quarter of 2022, Methyl Methacrylate has witnessed mixed sentiments in Europe. In addition, Due to lower production rates, Methyl Methacrylate prices in the European market climbed during April. In addition, production and operating speeds were restricted as upstream energy costs shot up. Logistical issues coupled with a scarcity of suppliers drove higher Methyl Methacrylate costs across the regional market. Furthermore, rising demand and favourable buying sentiments in the downstream construction and for the fabrication of Polymethyl Methacrylate have maintained the upward trend. Although, in the last month of the quarter, Methyl Methacrylate prices have declined, backed by ample availability combined with fragile demand from the downstream automotive sectors. Furthermore, the rising raw material cost, energy prices, and supply disruption have resulted in the weak demand for the product, curtailing the manufacturing output growth in Europe. As a ripple effect, prices of Methyl Methacrylate dropped by 2.0% throughout June.
For the Quarter Ending March 2022
North America
In North America, Methyl Methacrylate (MMA) prices showcased an upward trajectory in Q1-2022. Increase in the demand from the downstream paint and coating sector as solvent has weighed on the cost of MMA. Firm prices of upstream Coal impacted feedstock Methanol values, creating an imbalance in market dynamics, and resulting in a supply chain disruption. In addition, manufacturers raised the cost of MMA production due to the continuous price inflation of raw materials. Furthermore, the restriction of significant businesses between Russia and the USA with the ongoing war crisis resulted in the high energy cost. In the USA, Prices of MMA were settled at USD 2330/MT FOB UGSC during March.
Asia-Pacific
During the first quarter of 2022, Methyl Methacrylate prices in Asia-Pacific showed a seesawed trend. In India, costs of MMA showcased fluctuation in Q1. In the initial quarter of the month, the MMA prices increased on the back of the supply shortage and rising demand from the downstream paint industries. High feedstock prices, including Acetone and Ethylene, have weighed on the high pricing of MMA in the region. In addition, increased freight charges due to container shortage resulted in the supply shortfall. During the mid of the quarter, prices dropped significantly by 1%. The decline in the prices was attributed to higher availability and increased supplies in the domestic market, which kept MMA prices in the downward trend. The costs of Methyl Methacrylate CFR JNPT USD 2328/MT in March.
Europe
In contrast to the last quarter of 2021, Methyl Methacrylate showed positive sentiments in Europe during Q1 2022. MMA prices showed an uptrend on the back of the limited availability of the product in the region. High upstream coal prices due to the Russian invasion of Ukraine have impacted feedstock Methanol, which influenced the prices of MMA in the region. Furthermore, due to the extended energy crisis in the European region, certain production units reduced their running rates to safeguard their margins. Methyl Methacrylate General Purpose Grade FD Hamburg prices settled around USD 4090/MT during March.
For the Quarter Ending December 2021
North America
Sluggish demand from domestic market amid weakening upstream cost led to a consistent decline in price of MMA during this period in US market. Key driving sector i.e., PMMA (Polymethyl Methacrylate) also showcased dull sentiments throughout the quarter, led to pilling up inventories of upstream commodities. Furthermore, ease in Brent crude oil price under the threat of heightening concern on Omicron variant across Asia, also supported this downward trajectory for MMA in USA. In addition, by the end of this year, most of the plant turnarounds in global market was ended and supplies was ample enough to satisfy the overall need. Conclusively, after tumbling for continuous three months MMA price hovered around USD 2260/MT during December.
Asia
Threat of Omicron variant has been affecting market dynamics of Asia since November, while deteriorating demand from the domestic market kept the market movement dull throughout Q4 2021. Chinese market has to battle with high production cost and production cuts forced by government in order to coordinate with dual energy policy and control emission ahead of Beijing Olympics. Meanwhile Omicron threat led to a significant decline in prices of crude oil and its derivatives in APAC market, which also includes MMA. Demand for MMA from downstream PMMA segment remained lacklustre, due to which prices of both of these commodities kept on declining in regional market. MMA price heard hovering around USD 1803/MT in India during December.
Europe
Soaring natural gas prices shook the market dynamics of European market during early Q4 2021. Taking pressure from exorbitant rise in input cost, major key players heard revising their offers to maintain profitability. European key player Röhm GmbH revised MMA price during October by around USD 147/MT with immediate effect. Meanwhile, during third week of October, prolonged sales control measure imposed by Röhm was finally lifted by the company in order to sustain offtakes and register better margin. In addition, Röhm has also announced maintenance turnaround during final week of March 2022 (23rd March to 31st March).
