According to recent information, Formosa Chemicals is likely to announce maintenance turnaround on its Taiwan based 98000 tons/annum Methyl Methacrylate (MMA) unit during February-March timeframe. Nevertheless, no official announcement has been done yet by company’s officials, however turnaround might be in effect soon in the country. As per ChemAnalyst data, due to this plant turnaround, marginal effect on supplies of MMA across domestic market might occur.
Taking about current market scenarios in Asia, Methyl Methacrylate prices are maintaining stability, as the demand from the domestic downstream sector are modest since the first week of January. MMA is majorly used in the production of Polymethyl Methacrylate (PMMA), which is a highly favourable product for the manufacturing of automotive parts, durable plastics etc. Due to its property of being highly durable, scratch resistant and light weight it is also used in manufacturing of COVID face shield, which is also a driving factor that regulate dynamics of MMA under the current pandemic turmoil. However, demand fundamentals for PMMA from downstream automotive sectors has been dull since a long time from downstream automotive sector due to scarcity of semiconductor chips across global market.
As per the ChemAnalyst analysis, prices of Methyl Methacrylate are expected to remain rangebound in forthcoming months across Asian market, as there are numbers of factors are supporting this fact. Chinese market is going to be lacklustre for a significant period during February due to its annual spring festival, which will reduce the domestic consumption of PMMA. However, Asian MMA market also influenced by supply cuts from USA, as two major MMA players i.e., Ro¨hm and DOW announced force majeure. Conclusively, Methyl Methacrylate prices ae expected to remain stable to firm in forthcoming month in Asian market, and market sentiments may exhibit buoyancy by the end of February.
