High Feedstock Costs Accelerate the Polymethyl Methacrylate Prices in Europe and Asia

Since the beginning of February 2023, Polymethyl Methacrylate (PMMA) prices have witnessed a bullish trend across Europe and Asian markets, backed by the high feedstock prices. Improved demand dynamics, along with stable inventories in the region and high inflation, have further accelerated the prices of PMMA.

PMMA prices have been higher in the Chinese market due to high-cost pressure from the raw material Methyl Methacrylate (MMA) prices. In addition, operating rates have remained optimum in the wake of increased consumption from the domestic market, while the imports from neighboring South Korea and Japan have remained steady, resulting in stable inventories in China’s domestic market. On the other side, demand from the downstream automotive and other industries had recovered, and the market was expanding, leading to an increase in PMMA prices. Market participants reported a rise in queries from the end-user. Moreover, with improved container availability and unimpeded port movement, the movement of PMMA has stabilized. Furthermore, China’s manufacturing activity rebounded in February 2023 as production zoomed after lifting Covid-19 restrictions. According to the National Bureau of Statistics, the Purchasing Manager Index (PMI) settled at 52.6 in February from 50.1 reported in its last month. Thus, prices of PMMA were settled at USD 2166/MT with a month-on-month increment of USD 170/MT during February.

Similarly, PMMA prices have witnessed substantial inclination in the German market due to improved buying sentiments. Operating rates have been stable to firm in the domestic market, while the imports from South Korea and Japan have turned costly as prices increased in the Asian market. Feedstock MMA prices increased, resulting in the overall high production cost of PMMA in the domestic market. Meanwhile, there were no supply hiccups observed by the market participants. At the same time, demand from the construction and automotive sector has improved. According to ifo Business Climate index, it raised from 90.1 points to 91.1 points in February 2023. Thus, in conclusion, prices of PMMA were offered at USD 4713/MT during the same time frame.

As per ChemAnalyst, PMMA prices will continue to increase in the Asia and European markets in March 2023 due to further expectations of growing demand from the end-user automotive and other competitive industries. Additionally, feedstock MMA prices would increase, which may positively affect the production cost of PMMA.