Weak Demand Sinks the Global Methyl Methacrylate Prices
- 25-Aug-2022 5:22 PM
- Journalist: Yage Kwon
Several factors, such as the hostilities between Russia and Ukraine, China's shutdown against Covid, and unscrambling tension with China and Taiwan, have pushed up the prices of several commodities, including food and energy, resulting in the slowdown of economic growth. As per the latest insight, market sentiments for Methyl methacrylate in the domestic and international regions have been under pressure due to these exacerbated external imbalances.
According to the latest data, the pricing dynamics of Methyl Methacrylate in India have been stable, as cited by continued demand from the existing customers, during the third week of August 2022. The market players have informed that a satisfactory amount of the material is available to cater to the demand from the downstream Polymethyl Methacrylate and construction industries. Hence, as of result, prices of Methyl Methacrylate CFR UGSC were at INR 1660/MT during the same time frame.
In the meantime, similar market attitudes in China have also been noted. Methyl Methacrylate demand has been low since the epidemic struck the nation. However, despite a substantial recovery from the pandemic, it is still having trouble regaining economic momentum. However, the government's zero COVID policy continues to be a significant worry and might alter the current scenario.
Meanwhile, in Japan, Methyl Methacrylate prices have slumped by approximately 1% in the week ending 19th August. According to the market sources, Japan's manufacturing activity dropped in August as output and new orders deepened, amid growing pressure from persistent rises in raw material and energy costs and weakening global demand.
In addition, German manufacturing activity has shrunk abruptly, as the cost-of-living crisis compelled the consumer to cut spending even though supply constraints continued to hurt manufacturers. Besides, Purchasing Managers Index (PMI) has plunged from 49.9 to 49.2 compared with the previous month. Moreover, persistently soft demand amid weaker performing end-user sectors and depreciating currency against the USD, prompting domestic traders to cut their Methyl Methacrylate prices. Thus, a plunge of around 1-2% has observed in the prices of Methyl Methacrylate on 19th August.
As per ChemAnalyst estimation, "prices of Methyl Methacrylate will likely follow the downward trend in the global market. The burgeoning crude oil price and the dampening demand outlook from the downstream Polymethyl Methacrylate sector are likely to significantly impact the price realizations of Methyl Methacrylate in the upcoming weeks."