Polymethyl Methacrylate Prices to Witness a Mixed Sentiment in the Global market
- 19-Jul-2022 4:56 PM
- Journalist: Henry Locke
The Polymethyl Methacrylate market has witnessed mixed sentiments in the global market due to oscillating raw material costs. As per the market players, demand buoyancy from the downstream construction and automation industries has stressed the price value of the commodity and fuelled its market growth.
As per the latest insight, weakening demand and shrinking margins emerged from all downstream sectors like construction sectors have weighed down the prices drop in the Chinese market. The Polymethyl Methacrylate price plunged by nearly 1.3% during the week ending 15th July.
On the other side, the declining raw material Methyl Methacrylate prices have provoked negative cost pressure on the price dynamics of Polymethyl Methacrylate across the domestic market. The raw material Methyl Methacrylate prices have dropped by nearly 2%, as observed on 15th July, compared to last week's prices. Furthermore, a few suppliers from the local market also stated they are still monitoring local demand, but downstream production is at reduced levels due to the slower demand recovery. Meanwhile, in South Korea, Polymethyl Methacrylate producers are waiting for further price reductions due to falling costs. At the same time, Polymethyl Methacrylate prices also witnessed week-over-week decreases in Vietnam, Thailand, Indonesia, and Malaysia, supported by the dull market outlook as buyers are sticking to the sidelines and waiting for additional price drops.
However, the European market has been battling with prolonged firmness in the upstream natural gas price, affecting producers' margins. Besides, European buyers are paying more for the new cargoes amid Asia's huge LNG summer demand. As a result, Germany's Polymethyl Methacrylate price climbed by 5% during the same time frame.
At the same time, the US market has been at risk of substantial inflationary pressure and looming recession throughout the region. A similar price increment of around 1% has been observed for the USA in Polymethyl Methacrylate during the preceding week, while the demand dynamics are fragile. In addition, to calm persistent inflation in the country, the central bank has decided to raise the 75 base points rates for the July session, which will further influence the country's economic activities, especially in the automation and construction sector.
According to the ChemAnalyst, "prices of Polymethyl Methacrylate will likely fall in the Asian countries on the back of the soft raw material Methyl Methacrylate prices. At the same time, in the USA and European region, the prices are expected to surge owing to the high upstream Natural gas prices. On the other hand, demand from the downstream Automation and construction sector will likely improve."