For the Quarter Ending March 2022
North America
Taking pressure from upstream acrylic acid consistent increment in price of Meth Acrylic Acid has been observed during the first quarter in North America region. Due to constant escalation in upstream value, major companies have been heard facing escalating inflationary pressure. The sudden escalation of the Ukraine-Russia crisis in the last week of February drove up global crude oil prices, resulting in a sharp jump in raw material prices across the board. Meanwhile, during Q1 2022, the overall upswing in upstream Acrylic Acid prices in the United States was backed by global economic recovery and seasonal demand. Despite all these scenarios, Meth Acrylic Acid prices maintained overall stability throughout the quarter and was assessed around USD 2600/Mt during February 2022.
Asia Pacific
Meth Acrylic Acid market showcased overall stability throughout the quarter on the back of ample availability amidst modest offtakes from the downstream sectors. Despite huge climb in prices of upstream crude, Meth Acrylic Acid demonstrated marginal increment during the first quarter. Furthermore, different Asian market showcased different market sentiments in the meantime, as China was battling with sudden surge in pandemic cases in the country, that compelled government to impose strict lockdown restrictions in the country. Meanwhile, Indian economy remained optimistic throughout the quarter, where product prices reached USD 2987/MT during February. However, Russia-Ukraine conflict has shaken the global market dynamics, affecting demand fundamentals for several acrylates and its derivatives in Asian market.
Europe
Russia-Ukraine conflict has impacted the overall market dynamics of Europe during the first quarter of 2022. The European market has been battling yet another regional disruption, namely, rising natural gas costs in the region. Being so reliant on Russia for natural gas, the escalating conflict between Russia and Ukraine, as well as the imposition of waves of sanctions on the country, has led in a sharp increase in natural gas prices in key European countries such as Germany. Due to increased raw material prices backed by skyrocketing natural gas prices, major acrylate manufacturers such as Röhm GmbH have announced price revisions of their acrylates. In the meantime, the administration has promised to lessen its reliance on Russian natural gas in the coming years. Conclusively, Meth Acrylic Acid price was assessed around USD 2430/MT during February in Germany.
For the quarter Ending December 2021
North America
MAA kept on fluctuating throughout the quarter across USA as the demand supply fundamentals performed differently for different month. Despite sluggish offtakes from the downstream derivative segment, price remained buoyant during October on the back of rising input cost, which later declined during November after witnessing stringent demand dullness. However, for the month of December, taking pressure from resurgence in input cost, which induced overall inflationary pressure across North American market, MAA price also rose effectively. However, marginalising profitability remained a major concern for North American convertors. MAA price heard hovering around USD 2340/MT FOB during October.
Asia
Pandemic related uncertainties induced after sudden surge in Omicron variant in Asian market affected the overall market dynamics of the region. However, different nations worked differently throughout the quarter. In India, demand for the product showcased significant bounce back during November on the back of festivities in the country, which later declined by the end of December in the country. While China and Japan performed differently, dual energy policy in China compelled manufacturers to practice production cuts in the country, that reduced the demand from the downstream sector which later balanced out with low availability of product. Thus, marginal fluctuation in price of MAA was observed in China, which assessed around USD 2520/MT during November in China.
Europe
Consistent hike raw material cost on the back of exorbitant surge in natural gas prices shook the market dynamics of Europe during this quarter. several downstream consumers had to transfer the price burden on consumers in order to sustain their profit margin. a major European downstream user, Röhm announced price revision on its derivative product MMA (Methyl Methacrylic Acid) due to consistent surge in raw material cost amid stable to firm offtakes from the domestic end use segment. In addition, Röhm has also announced maintenance turnaround during final week of March 2022 (23rd March to 31st March), which will reduce offtakes for MMA in the meantime.