Methyl Methacrylate Demand Remains Sluggish In The Chinese Market
- 05-Aug-2022 12:18 PM
- Journalist: Li Hua
Global economic recovery has been under threat since the concern over recession has emerged in several key economies. Since the pandemic has hit China's market, it has been struggling to gain momentum again. As per the latest insight, Polymer and resin demand in the Asian market has weakened during a seasonal lull. Currency depreciation against the US dollar has curbed consumers' purchasing power, especially in Asia's developing and underdeveloped countries.
In addition, prices of Methyl Methacrylate have fallen sharply across the Chinese markets, mainly driven by persistently weak demand, as strict Covid-19 policies slow the nation's economic growth. As per the market sources, demand dynamics for the product have been muted in domestic and international markets; thus, Methyl Methacrylate prices tumbled in China under the influence of stockpiled inventories. Hence, as of result, prices of Methyl Methacrylate were quoted at USD 1700/MT with a declination of around 1.2% entering August 2022.
At the same time, the country's construction sector has been lingering since the previous quarter; thus, the demand for Methyl Methacrylate remained gloomy, leading to a straight and consistent fall in the product's prices. Additionally, the government data shows a fall in purchasing manager index during July, affecting global crude oil prices. Additionally, international crude oil prices have recently witnessed a significant plunge amidst weak demand. Similarly, in South Korea, the domestic market remains bearish. Demand from the domestic and international markets remains sluggish; therefore, Korean Methyl Methacrylate (MMA) producers have become more aggressive toward the export business.
According to the ChemAnalyst estimation, "Methyl Methacrylate (MMA) prices will likely follow the downward trend throughout August 2022, as the country's economic activities might not change their pace further. On the other side, low offtakes from the downstream Polymethyl Methacrylate might impact the pricing dynamics of Methyl Methacrylate in the Chinese market."