For the Quarter Ending September 2023
North Americ
Meth Acrylic Acid (MAA) prices in the North American market have registered a drop in the quarter starting July due to steady supply throughout the US market and moderate demand from the downstream paints and coating industry. In August, MAA prices have continued the bearish tail. Despite a hike in the upstream petrochemicals market, ample domestic supply has been weighed on MAA prices. Moreover, the US dollar has been running stronger than other currencies, which has affected the demand side negatively in the overseas market. September month prices have shown improvement in MAA prices. Though upstream material cost have been on lower side, still overseas automotive sector demand have driven the prices up. Moreover, markets have been watching on upcoming Federal Reserve meeting amidst oil market volatility. Mixed demand sentiments have been observed from Asian continents. India’s automotive sales has been increased in September, resulting increase demand of MAA in auto parts manufacturing. Thus, MAA prices as of Sept. 29 has been closed at USD 2802 per metric tonnes, FOB USGC.
APAC
Quarter three front month Meth Acrylic Acid (MAA) prices have shown a decrement in all over the Asian market. This is due to the drop in domestic demand from the downstream industries despite an increase in raw material Acetone prices. As per data, overseas purchases of MMA have decreased by 30% in the month of July. The demand of MMA and PMMA from the international market like USA have been decreased, indicated by a lower number of enquiries. In August, exports from major supplying countries such as Japan and South Korea has been steady month to cater the domestic demand. This month except China, the rest of Asian continents have shown improvements in MAA prices. China’s total cargo throughput have increased by 8% y-o-y in 2023 compared to previous year while exports decreased by 6% y-o-y. Extreme weather and natural disaster like typhoon have affected the logistics flow in China and increased the port congestion. However, domestic stocks have been reported enough to cater the regional demand. A growing crisis in Chinese banking sector have been also threatening the economy. Downstream paints and coating industry growth have been also steady. While in Indian market increasing upstream prices and growing downstream plastic engineering market and automotive market have supported a price hike of MAA. Japan Merchandize exports have been resilient indicating a strong demand in electronics and machineries manufacturing sectors. In September, China’s MAA market have bounced back with a significant hike. Lower petrochemical capacity have supported a hike in upstream production costs amid upcoming National Holiday season. With increasing consumer spending downstream poly packaging market in India have also seen growth amid upcoming festive sales. Meanwhile Vietnam’s exports to India has been increased in September by around 4%. Thus, MAA price as of Sept. 29 has been closed at USD 1988 per metric tonnes, CFR Shanghai.
Europe
Meth Acrylic Acid (MAA) prices at the start of third quarter have demonstrated a significant drop in Eurozone. This has been due to decreased upstream Acetone and Sulphuric acid prices which again have supported the steady supply of feedstock in the domestic market. However, the disparity between contract and spot prices has been a major concern in that month for chemicals manufacturer in Europe. Demand from downstream electronics industries have followed a slight downtrend this month. A declined production activity has been reported, indicated slower growth of demand. Again a significant drop has been noticed in August month in MAA prices due to sluggish economy. Exports of Germany to other Eurozone has registered a decline of about 12% from previous month. On the other hand, EU imports from one of the major supplier Japan have been resilient in August. September prices have witnessed a sharp drop. Data have witnessed a significant decrease in demand of overall Eurozone which have marked the fastest pace of decrease in nearly three years. Increased borrowing cost, higher goods prices and cautious consumer spending among indebted households have been contributing to the economic downturn. Thus, MAA prices as of Sept. 29 has been closed at USD 2178 per metric tonnes, FOB Hamburg.
Middle East
Meth Acrylic Acid (MAA) prices at the start of third quarter has demonstrated a significant drop in the market of Saudi Arabia. This is due to steady supply throughout Middle East market and moderate demand from downstream paints, adhesive and construction industries for sustainable packaging industry. Moreover, the slight drop in prices of feedstock sulphuric acid due to decline demand from fertilizer industry support the price drop of MAA. Abundant inventory both in the domestic market and ports, due to firm production activities have maintained the stability of the supply chain. Prices in the market of Saudi Arabia has witnessed a decline again in August due to subdued demand from the downstream MMA industry such as paints and solvents sectors. Ample domestic inventory to cater subdued poor demand from downstream MMA and PMMA (Poly Meth Methacrylate) industry has been weighed on the MAA prices. However, in September prices of MAA have shown little improvement Since increased energy prices have supported the production cost of upstream materials, meanwhile further production cut announcement from Saudi and Russia have raised the future shortages concerns. Thus as of Sept. 29 MAA prices has been closed at 2024 per metric tonnes, FOB Jizan.
For the Quarter Ending June 2023
North America
The overall market situation was observed to be strictly increasing throughout the entire Q2 in the American markets, in the presence of a 31% increase in the downstream construction industry observed in the past month. Further, the consumption of Meth Acrylic Acid increased in the market in the sight of improving product purchasing activities from downstream paints and coatings as well as the adhesives sectors. The supply was observed to be on the moderate side. However, in mid-May, the demand for MAA diminished in the US market due to rising inventories of finished products and a decline in consumption rates. Moving on towards May 2023 of Q2, the prices of meth acrylic acid started improving on the back of stable cost support and a sharp increase in demand from the international market. Market participants have reported frequent queries from Asian and European buyers. Upstream Propylene prices have been steady, resulting in steady cost support, while inventory remained under pressure due to promising demand incoming from the international market. Meanwhile, the demand from the downstream Polymethyl Methacrylate industry and queries from the international market had witnessed optimism towards the last weeks of June 2023.
APAC
The overall market situation was observed to be strictly increasing throughout the entire Q2. The Chinese region experienced an increase in the market value of MAA, primarily due to a rise in the production cost of the product. Further, the price hike was justified due to the increase in the trust of investors in the Chinese Construction Industry in the industry's long-term growth rates. According to market participants, the supply of MAA in the Chinese market remained moderate, and inventory levels were reported to be stable among regional traders. The consumption of Meth Acrylic Acid soared in the market with the increase in product purchasing activities from downstream paints, coatings, and adhesives sectors. Further, the increase in MAA prices can be linked to an increase in packaging prices of High-Density Polyethylene (HDPE) and Mild Steel (MS) containers for Meth Acrylic Acid, increasing the overall cost pressure for the Meth acrylic acid. Further, the increase in the cost of the upstream stabilizer Hydroquinone Monomethyl Ether (MeHQ) which is used for polymerizing Meth Acrylic Acid, subsequently put the regional market pricing sentiments on the uptrend.
Europe
The prices of Meth Acrylic Acid in the European market observed a persistent increase in the first half of Q2 from April to May, which later decreased in the last weeks of June. In the first half, it increased the presence of elevated consumption of Meth Acrylic Acid in the market along with the increase in product purchase activities from downstream paints, coatings, and adhesives sectors. Additionally, an increase in the feedstock Meth Acrylamide Sulphate prices and an increase in operating rates had also been a supporting factor behind the surging price trend of methacrylic acid in the European market. In fact, some strikes of German rail unions tumbled the smooth flow of goods and materials in the market, the inventory levels were low, but it had limited bearing over the positive demand incoming. In the second half of Q2, from mid-May to June, the prices surged in May again on the back of stable cost support as upstream Propylene prices were steady and sharp demand from the international market was observed. Differing from, in late June, the prices again took on the downtrend in direct relation to the decreasing enthusiasm of consumers from downstream paints and coatings industries and the decrease in the procurement of Meth Acrylic Acid in the German markets.
The market value of Methacrylic Acid escalated in the North American market, with prices ranging at USD 2723/ton FOB USGC in February. The procurement of MAA for the manufacturing of adhesives and sealants increased in the USA region with lowering inventories of products with the traders. The demand for MAA has been strong in the construction and automotive industries, which are the key end-use market for the product, and has driven up the market value of the product. The sales generated by the MAA manufacturing companies were high, and subsequently, their profits increased, too, as per sourced by the traders and the merchants.
The costs of Methacrylic Acid escalated in the Asian market, with prices at USD 1937/ton CFR Shanghai in China during January. The costs of feedstock Acetone Cyanohydrin, Sulphuric Acid, and other inputs, like operating rates involved in the production, remained high, and suppliers were able to maintain their prices without the need to adjust. The procurement of MAA seemed to be high for the manufacturing of leather and adhesives, which declined the stocks of feedstock Acetone Cyanohydrin and Sulphuric Acid as well as inventories of the product. The procurement of MAA seemed to be high for the manufacturing of leather and adhesives, which declined the stocks of feedstock Acetone Cyanohydrin and Sulphuric Acid as well as inventories of the product.
The costs of Meth Acrylic Acid (MAA) elevated in the European market with prices at USD 2687/ton FOB Hamburg during the first quarter in 2023 in March. The purchase of MAA elevated the manufacturing of adhesives and sealants from the construction industry, which is up by 4.5% in the past week, and an increase in earnings is expected in the regional market. The consumption of Meth Acrylic Acid decreased in the German market with the declining purchase of products from downstream paints and coatings as well as the adhesives sector. There was a high stockpile of the product in the region as sourced by the traders and suppliers.
