Supply Chain Disruption Influencing the US Methyl Methacrylate Market
- 01-Jul-2022 5:22 PM
- Journalist: Nicholas Seifield
Methyl Methacrylate (MMA) has witnessed a slight increase in the US market owing to the firm raw material prices and supply constraints in the domestic market. According to the ChemAnalyst, costs of Methyl Methacrylate were assessed at USD 2465/MT with a marginal rise of 1% in the week ending 24th June as compared with the previous week. In addition, Supply chain disruptions amidst the convergence of Russia's invasion of Ukraine and China's new COVID-19 lockdowns have remained the largest stumbling block for the US economy.
On the supply side, the Methyl Methacrylate market in the US remains constrained; the supply remains disrupted. Also, low operating rates coupled with the tight supply of raw material hydrogen cyanide (HCN) has impacted the Methyl Methacrylate prices. Furthermore, high energy costs and Natural gas resulted in the high manufacturing costs of Methyl Methacrylate.
However, demand from downstream paints and coating adhesives industries has been weak to stable owing to growing assumptions around the recession, discouraging the buyer's sentiment in the domestic market. Also, the inflation rate has been a headwind since the Russian invasion of Ukraine, resulting in the spiralling prices of various commodities.
Furthermore, producers and distributors have been able to shift the burden of inflated prices onto consumers; however, consumers have been left with limited options and have faced the fury of an endless rise in prices in the domestic market.
According to ChemAnalyst estimation, "Methyl Methacrylate prices in the US market appear to be stable in July, backed by deteriorating buyer sentiment and mounting inflation. At the same time, demand from the downstream paints and coating and adhesives industries might be weak to stable. In addition, the US has been moving ahead from the Russia- Ukraine crisis, and industries have shown early signs of resurgence; however, the ominous risk of the recession may undermine the recovery of the US economy."