April 2025 experienced a sharp fall in US and German Methacrylic acid (MAA) prices due to a combination of seasonal decreases, weak downstream demand, rising supply, and supply chain concerns. The global MAA market was struggling with weak consumption in major segments, especially coatings, adhesives, and construction. These conditions, coupled with raw material price volatility and congestion at ports, led to declining prices and an unfavorable market situation.

The US MAA market saw a definite decline in April 2025. The main reason for the decline was a seasonal decline in demand, which was seen as industries such as construction and coatings showed weakness. Consumption was observed to be weaker in these industries, coupled with weaker demand from downstream industries such as adhesives. This decline in demand led to overall market transactions declining.

On the other hand, MAA production remained unchanged, but the resulting oversupply owing to excessive production due to dropping demand added to declining prices. Raw material costs, especially isobutylene, also fell in the month, allowing manufacturers to reduce prices. Disruptions to international supply chains, such as congestion at ports and shipping delays, added to the pressure. Congestion on the US West Coast was also added to by a backlog owing to recent tariff issues. Producers scrambled to export before tariffs increased, leading to severe lagging of ship arrivals and thus impacting MAA exports, adding to a general bearish market sentiment.

Germany's MAA market lagged the US downtrend. The initial stages of Q2 2025 were witness to an all-round decline in demand in major industries, particularly those dependent upon MAA such as coatings and adhesives. This inherent decline in demand led to diminished consumption of MAA and the higher availability of MAA in the market further increasing the problem, thus making it an oversupply condition.

Higher MAA production was a major reason for the price fall, as more inventories accumulated during the month. Prices for raw materials, especially isobutylene, continued to fall, enabling the manufacturers to decrease their prices to liquidate the overhang in inventories. Germany too experienced logistical challenges, namely within the port networks. Low water levels of the Rhine River were also heavily impacting barge capacity, limiting shipping choices. This, though, led to congestion in the main ports such as Antwerp and Hamburg, worsening delays and derailing supply chain efficiency. The delays also further restricted the capacity of the market to consume the growing supply.

Both the US and Germany's MAA markets are conservative in their outlook. While optimism for some minimal seasonal pick-up, particularly in the coatings segment, exists, more general economic uncertainty, supply chain disruptions, and ongoing soft demand from downstream markets are projected to continue negative pressure on prices. The inventory build, together with the ongoing logistic restrictions, will likely preserve the market's bearish nature unless or until dramatic improvement is seen in demand or in solving supply chain problems.