European Methyl Methacrylate Market Impacted by Rising Natural Gas Prices

Germany, Europe: It has been almost three months since Russia's President Vladimir Putin commenced the brutal military action on Ukraine, and the war is still ongoing. This action led to a dramatic hike in Natural gas prices in the international market. Natural gas, the primary element for all commodities, notably Methyl Methacrylate, has proportionally showcased its impact on regional market prices.

As per the latest insight, the market for Methyl Methacrylate (MMA) demonstrated an upward trend in Europe, backed by the increasing cost of raw materials and boosted downstream demand. The shoot-up in Natural gas harmed the feedstock prices, which has further weighed on the high pricing of Methyl Methacrylate. Apart from the raw material cost, raised demand and maritime charges were other factors that influenced the Methyl Methacrylate price chart. Therefore, the prices of Methyl Methacrylate were inclined by 1-2% in the previous weeks.

In addition, a trader revealed that manufacturers of Methyl Methacrylate (MMA) had found themselves in a difficult situation in the European market. The key players of Methyl Methacrylate include Mitsubishi Chemical Corp., Röhm GmbH, and Trinseo PLC. They all produce Methyl Methacrylate via the Acetone Cyanohydrin (ACH) route, which uses synthetic hydrogen cyanide. As a result of escalating natural gas prices, which serve as a source for this synthetic hydrogen cyanide, these companies are being forced to hike their selling prices.

Furthermore, some European Methyl Methacrylate manufacturers are reducing their capacity utilization rates due to the tight supply of raw material, which in turn led to the supply scarcity in the region.

Moreover, Asia and the North American region have also seen a minor effect from the upswing in natural gas prices. The data shows a significant hike of 2.5%- 3.0% during the previous weeks. On the other side, demand for Methyl methacrylate from the downstream industries remained strong.

ChemAnalyst predict, “in the coming weeks, Methyl Methacrylate prices are expected to rise owing to the further increase in the raw material prices. Meanwhile, demand from the downstream for the fabrication of PMMA is likely to increase."