For the Quarter Ending September 2024
North America
The third quarter of 2024 has been a period of increasing prices for Poly Methyl Methacrylate (PMMA) in the North America region. The significant factors influencing market prices include supply constraints, limited material availability, and heightened demand from the downstream automotive and construction industries.
These factors have contributed to a tightening of supply and a subsequent uptrend in prices. Mexico, in particular, has experienced the most significant price changes, with a notable 22% increase from the same quarter last year. In Q3 2024, prices saw a 9% increase from the previous quarter, reflecting the continued upward trajectory.
The second half of the quarter showed a 7% price increase compared to the first half, indicating a strengthening pricing trend. Most market transactions had primarily occurred on a need-on-demand basis. Additionally, feedstock MMA provided adequate cost support for PMMA, with its prices being noted at the higher end in the domestic market, which resulted in an upward shift in PMMA price realization.
APAC
Poly Methyl Methacrylate (PMMA) prices in the APAC region during Q3 2024 have seen a significant uptrend, primarily driven by supply constraints and increased production costs. The tight supply of feedstock Methyl Methacrylate, coupled with limited inventories and reduced import offers, has led to a surge in PMMA prices across the region. This supply-demand imbalance has created a bullish market sentiment, with most market transactions being need-based. China, in particular, has experienced the maximum price changes, with PMMA prices steadily increasing throughout the quarter. The overall trend in the region has been one of consistent price hikes, reflecting a 30% increase from the same quarter last year. Additionally, there was a 13% increment from the previous quarter in 2024, indicating a sustained upward trajectory. The price comparison between the first and second half of the quarter showed a 10% rise, further emphasizing the strengthening pricing environment. Most market transactions were primarily conducted on a need-on-demand basis. Meanwhile, the supply of PMMA remained constrained, largely due to fewer import offers from the exporting market and reduced domestic operating rates, which drove up PMMA prices in the domestic market.
Europe
Poly Methyl Methacrylate (PMMA) prices in the Europe region for Q3 2024 have seen a significant uptrend, driven by various factors influencing market dynamics. Key reasons for the price increases include tight supply conditions, with low operating rates and reduced import offers from Asia impacting availability. The rise in feedstock Methyl Methacrylate prices has also contributed to the high production costs of PMMA, further pushing prices upwards. Demand from downstream industries like automotive and construction, while average, has played a role in supporting the price hikes. In Germany specifically, the market has experienced the most price changes, with a notable 11% increase from the previous quarter. Overall trends suggest a positive sentiment in pricing, with a 6% increase compared to the same quarter last year. The quarter saw consistent price growth, with an 11% change between the first and second halves. Even though demand for PMMA from downstream sectors like automotive, coatings, and construction had been slower than anticipated, spot market transactions were also low, with several buyers remaining on the sidelines.
For the Quarter Ending June 2024
North America
Throughout the second quarter of 2024, Polymethyl Methacrylate prices have continued to rise in the US market. The feedstock Methyl Methacrylate prices have remained on the higher end amid tight supply, resulting in the strong production cost of Polymethyl Methacrylate in the domestic market, leading to an upward shift in the price realization of Polymethyl Methacrylate. In addition, the inquiries from the downstream automotive industry have escalated which lifted the prices of Polymethyl Methacrylate in the domestic market. As per the market sources, US new vehicle sales of 1,444,543 units for the month of 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. However, demand for Polymethyl Methacrylate from the construction industry has declined amid persistent inflation and high mortgage rates.
On the other side, a major producer of 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.
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%. In the meantime, supplies of imported materials from Asia were constrained, with the situation further aggravated by logistical bottlenecks stemming from rising freight rates. Also, imports from Canada have reduced amid the rail union labour strike, resulting in the supply shortage of Polymethyl Methacrylate in the US domestic market. This toxic cocktail of factors has further pushed up the prices of Polymethyl Methacrylate in the domestic market. Consequently, prices of PMMA DEL Texas were settled at USD 3502/MT with a month-on-month increment of 2.1% during June 2024.
Asia- Pacific
Polymethyl Methacrylate (PMMA) has continued to rise in the South Korean market during the second quarter of 2024 owing to high raw material prices and tight supply within the domestic market. The cost support from feedstock Methyl Methacrylate was sufficient on Polymethyl Methacrylate as its prices settled on the higher end in the domestic market, supporting the prices to follow an uptrend in the domestic market. In addition, domestic demand for Polymethyl Methacrylate from downstream construction and electronic industry has been stable throughout the quarter but there is an expectation that demand will recover in the near future. However, inquiries from the other downstream segments, notably the automotive industry, were subdued across the domestic market. According to preliminary data released individually by the manufacturers domestic sales by South Korea’s five main automakers combined fell 11% to 117,064 units in May 2024 from 131,090 a year earlier. Meanwhile, procurements from overseas markets have been observed on the positive end in an effort to restock the inventories which promoted the manufacturers of Polymethyl 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. Regarding domestic production, operating rates for Polymethyl Methacrylate (PMMA) continued to be extremely low, and a structural return to more normal operating rate levels is not expected in the coming months, especially considering the significant negative impact of elevated Methyl Methacrylate costs. The material availability was relatively limited in the domestic market, keeping the prices elevated in the domestic market. Thus, prices of Methyl Methacrylate FOB Busan were settled at USD 2186/MT during June 2024.
Europe
Polymethyl Methacrylate (PMMA) prices continued to experience an uptick across the German market during the second quarter of 2024 owing to low operating rates, depletion in inventory levels, high raw material costs, and a significant increase in freight expenses. Furthermore, major producer Rohm has also increased the prices of Polymethyl Methacrylate. Additionally, the key feedstock Methyl Methacrylate prices in the domestic market have persistently increased amid tight supply. Therefore, most manufacturers of Polymethyl Methacrylate have adjusted their offers upward, citing cost support. Additionally, demand for Polymethyl Methacrylate from the downstream automotive industry has increased, contributing to an upward shift in the price realization of Polymethyl Methacrylate in the domestic market. However, inquiries from the construction industry have continued to struggle in the domestic market, leading to wider macroeconomic difficulties. 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. 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 which further elevated the prices of PMMA in the domestic market. Additionally, manufacturers faced operational constraints due to ongoing industrial strikes and adverse weather conditions affecting transportation and port activities, further impacting the supply of PMMA 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 Polymethyl 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. Thus, prices of PMMA FD Hamburg were settled at USD 3426/MT with a month-on-month increment of 3.0% during June 2024.
For the Quarter Ending March 2024
North America
Polymethyl Methacrylate (PMMA) prices have showcased a bullish trend in the US market during the first quarter of 2024. The feedstock Methyl Methacrylate prices have increased amid tight supply which in turn led to the high production cost of Polymethyl Methacrylate in the domestic market, contributing to the upward shift in the price realization of PMMA in the domestic market.
In addition, the recent turmoil in the Red Sea along with the prolonged drought in the Panama Canal has had a substantial impact on the market dynamics of several commodities including Polymethyl Methacrylate. In addition, rates for shipping containers from Asia to the US have surged as rebel attacks on vessels in the Red Sea continue to disrupt traffic through the waterway while at the same time, drought conditions are limiting vessel transits through the Panama Canal.
On the other hand, by keeping prices higher, manufacturers seek to cover their costs and maintain margins. In addition, demand for PMMA from the downstream automotive has increased in the domestic market. According to the National Automobile Dealer Association, Total Vehicle Sales in the United States increased to 15.81 Million in February from 14.92 Million in January of 2024. Thus, strengthened the market sentiments of PMMA in the domestic market.
Asia- Pacific
Polymethyl Methacrylate (PMMA) prices have witnessed a see-saw trend in the Asian market during the first quarter of 2024. During January 2024, PMMA prices have increased in the South Korean market. The feedstock Methyl Methacrylate (MMA) prices have increased, resulting in the high production cost of PMMA, supporting the prices to follow an uptrend in the domestic market. In addition, the operating rates of PMMA manufacturing firms have remained under pressure. Thus, with limited production activities, the availability of finished stock of PMMA was relatively limited to meet the demand from the downstream industry. Furthermore, the South Korea manufacturing Purchasing Manager Index was registered at 49.9 In December, little changed from 50.0 in November 2023, signalling a soft deterioration in the new orders and output. However, in the midst of off-season dullness and tepidness in the global economy, the demand for PMMA from the domestic and international markets has been underwhelming and thus, the pace of inquiries from the downstream automotive and construction industry has remained subdued due to slow consumption from the end-user sector. As a result, prices of PMMA have been observed on the lower end during February 2024. On the other hand, the major producer of Polymethyl Methacrylate LG Chem reported Q4 2023 sales dropped 3.8 percent to 13.13 trillion won from 13.66 trillion won. However, PMMA prices have unexpectedly increased during March 2024 due to the high-cost pressure from feedstock MMA. 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 PMMA prices.
Europe
Polymethyl Methacrylate (PMMA) prices have witnessed a varied trend in the European market during the first quarter of 2024. In initial Q1 2024, persistent downward pressure lingers across the German PMMA market supported by a lack of demand recovery in key consumer industries. The cost support from feedstock Methyl Methacrylate was limited to PMMA 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 PMMA in the domestic market. Meanwhile, demand for PMMA from the downstream PMMA industry was sluggish in the domestic market due to slow consumption from the construction sector which weighed down the prices of PMMA. As per the market sources, Germany's construction Purchasing Manager Index dropped from 37.0 in December to 36.3 in January 2024 pointing to a sharp contraction in overall building activity. In the meantime, demand from the other European markets has also been observed on the lower side amid macroeconomic headwinds. However, towards the end of Q1 2024 MMA prices have strengthened in the domestic market. The raw material MMA prices have risen followed by strong crude oil prices which resulted in the high production cost of PMMA in the domestic market. Furthermore, PMMA production has been hindered by a rail strike in Germany and tensions regarding commercial ships, significantly disrupting the domestic supply of PMMA and raw materials originating from East Suez. As a result, prices of PMMA FD Hamburg were settled at USD 3188/MT during March 2024.
For the Quarter Ending December 2023
North America
Prices of Polymethyl Methacrylate have witnessed a bullish trend in the US market during the fourth quarter of 2023. As a major producer, Roehm in Darmstadt, Germany, has raised prices for Polymethyl Methacrylate in the United States that is effective from 1st November 2023. Similarly, another manufacturer of Polymethyl 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 PMMA market, particularly within the United States, are currently confronting. Although, feedstock Methyl Methacrylate prices have showcased fluctuations throughout the quarter.
In addition, the demand for Polymethyl Methacrylate have increased from the construction industry. According to the Government data, new US home construction unexpectedly picked up in October, indicating builders continue to benefit from a limited supply in the resale market. Residential starts increased 1.9% last month to a 1.37 million annualized rate, the highest in three months, thus reinforcing the prices of PMMA in the domestic market. Although, offtake from automotive sector has been steady amid the UAW strike against GM, Ford and Stellantis. The downstream procurements were mainly based on need-on-demand basis.
Meanwhile, import from the Asian market have turned costly as freight charges have increased from Asia to East coast and West coast which in turned led to high imported prices of PMMA in the US domestic market. Furthermore, the material availability was limited to cater to overall downstream demand. Therefore, prices of PMMA DEL Texas were settled at USD 3355/MT during December 2023.
Asia- Pacific
During the fourth quarter of 2023, the prices of Polymethyl Methacrylate in the South Korean market consistently decreased. The support from the feedstock Methyl Methacrylate was limited, contributing to lower prices in the domestic market. The downstream construction sector showed subdued inquiries, and spot market transactions were average, as there was limited enthusiasm from terminal firms to enter the market, leading to a downward price trend domestically. Despite this, the automotive sector exhibited moderate offtake. Market sources reported a nearly 3% increase in domestic sales by South Korea's five main automakers combined, reaching 132,589 units in November 2023 compared to 129,290 units the previous year. However, inquiries from the Chinese market were on the lighter side due to a weak economic recovery. Exports to China, South Korea's largest market, continued to contract, experiencing a 0.2% dip to $11.4 billion. Although there was a decline, the overall value remained above $10 billion, reflecting weak demand. Conversely, South Korea's inflation decreased in November after four consecutive months, providing relief to policymakers striving to maintain a prolonged restrictive monetary policy amid ongoing inflation concerns. The reduction in inflationary pressures helped alleviate strains on the buying capacities of end-use industries. Additionally, during the ongoing destocking season, manufacturers were observed to be more inclined towards releasing existing inventories. Therefore, prices of Polymethyl Methacrylate FOB Busan were settled at USD 1857/MT during December 2023.
Europe
Polymethyl Methacrylate prices have continued to decline in the German market throughout the fourth quarter of 2023. The feedstock Methyl Methacrylate prices have decreased which resulted in the low production cost of Polymethyl Methacrylate in the domestic market. These led to the bearish market sentiments of Polymethyl Methacrylate among the manufacturers. In addition, macroeconomic headwinds such as persistent inflationary pressure and high-interest rates have dampened the purchasing power of end-users. Meanwhile, the inquiries from the downstream construction and electronic industry have remained tepid in the domestic market. The lukewarm 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 deterioration in downstream demand could be attributed to underperforming end businesses and economic uncertainties across the globe. However, inquiries from the automotive sector have increased in the given time frame but it had limited bearing over the prices of PMMA in the domestic market. On the other hand, the operating rates of the manufacturing firm have been low as demand from the downstream industry has not improved yet in the domestic market. Despite this, the material availability was abundant which encouraged the manufacturers to destock the inventories at low prices. Thus, as a result, prices of Polymethyl Methacrylate FD Hamburg were settled at USD 3195/MT during December.
