Deteriorating Demand Downturns, Polymethyl Methacrylate (PMMA) Prices in Asia
- 18-Aug-2022 1:45 PM
- Journalist: Motoki Sasaki
Singapore: The persistent drop in the cost support from raw materials and the subdued demand from the downstream automotive and construction sector have negatively impacted the Asian Polymethyl Methacrylate market. Furthermore, the slump in buying and trading activities across the regional and overseas markets is consistently diminishing, keeping the spot transactions below average. Also, the fear of global inflation pressurizes the Polymethyl Methacrylate value and presents several uncertainties across the value chain.
According to several market participants, the prices of Polymethyl Methacrylate consistently plunge in the Chinese spot market owing to the rising inventories and muted demand. Chinese manufacturing activity has weekend abruptly after a tumble of economic uncertainties in the last two quarters, and the overall manufacturing PMI has slipped to 49.0 from 50.2 on a month-on-month basis. The stagflation in the global economy and the rising geopolitical conflict with the United States have put considerable pressure on the market sentiments for several vital commodities, including Polymethyl Methacrylate. Moreover, the benign inflation in China has been attributed to the feeble downstream domestic demand, which prompted an unusual moderation in the price indices, provoking the world’s second-biggest economy to slow down.
Whereas in India and Southeast Asia, the prices of Polymethyl Methacrylate have witnessed a downward momentum in the preceding weeks. Also, the market sentiments have been decreasing as the production cost and start-up cost for Polymethyl Methacrylate has dropped. Consequently, Polymethyl Methacrylate has a diminishing market value. In addition, the subordinate transportation rate is the primary factor behind the decline in Polymethyl Methacrylate prices. As a result, prices of Polymethyl Methacrylate plunged by around 1.4% in the week ending 12th August. Similarly, demand from the downstream remained bearish on the back of the lacklustre economy in the Indonesian market. Hence, the prices of Polymethyl Methacrylate settled at USD 2450/MT in August 2022. At the same time, in Thailand, supply appears to be sufficient; surplus domestic Polymethyl Methacrylate supply drove the prices downward in the domestic market.
According to the ChemAnalyst pricing intelligence, “prices of Polymethyl Methacrylate (PMMA) will likely follow the downward trend in the Asian market owing to the weak cost of the raw material Methyl Methacrylate. Meanwhile, the mounting global inflation might pressure the demand fundamentals from the downstream construction and automotive industries in the forthcoming weeks.”