With Lackluster Demand, Methyl Methacrylate Prices Continue to Decline Across the Globe
- 27-Dec-2022 2:36 PM
- Journalist: Patrick Knight
Prices of Methyl Methacrylate have sustained their bearish trend across the globe during the fourth week of December 2022, backed by weak feedstock prices and gloomy demand. The slowdown in the economy amid inflation and rising COVID-19 cases in China, along with strict monetary policies, has other factors impeded the market growth of Methyl Methacrylate.
Prices of Methyl Methacrylate remained unchanged in China on the back of firm availability of the product in the domestic market. The overall supply and demand were balanced in the market, and the operating rate was stable, supporting the current price trend of the product. Thus, as a result, prices of Methyl Methacrylate Ex- Qingdao were assessed at USD 1429/MT during the week ending 23rd December 2022.
Methyl Methacrylate prices remained weak in the German market as the market participants reported constrained queries from end-user Polymethyl Methacrylate industries as the West awaits the holiday season, which resulted in sluggish buying sentiment. Although, the threat of a recession continues to ease. In addition, supply has also been supported by a steady inflow of cheap imported material from the USA and Asia, resulting in the price drop of Methyl Methacrylate. Furthermore, consumer sentiment has declined in the Europe market in the last few weeks, supported by the drop in Manufacturing Purchasing Index (PMI), which dipped below 50 (i.e.,48.8), signifying a deterioration in manufacturing and industrial activity. In addition, a significant manufacturer, Rohm GmbH in Germany, lowered its prices for Methyl Methacrylate in December. Thus, as a result, prices plunged by 2% during the previous week.
Similarly, in the USA, Methyl Methacrylate prices continued their drop into the penultimate week of the year due to the sluggish performance of the downstream Polymethyl Methacrylate industry. The weak price trend of upstream Acetone Cyanohydrin contributed to the downward pricing trend for Methyl Methacrylate in the domestic market. Despite the lower operation rates, the ample inventory levels in the domestic market helped to decline the Methyl Methacrylate cost. In addition, the manufacturer was forced to lower their prices in the domestic market due to end consumers' wait-and-buy sentiments amidst inflation. In conclusion, prices of Methyl Methacrylate FOB USGC were assessed at USD 2132/MT on 23rd December 2022.
According to ChemAnalyst analysis, "prices of Methyl Methacrylate across the global market will continue to fall in the upcoming weeks owing to the feeble consumption from the downstream derivative Polymethyl Methacrylate industries. However, if the downstream demand revived, the prices of Methyl Methacrylate will be expected to increase during January 2023".