For the Quarter Ending December 2022
North America
During Q4 of 2022, the manufacturing cost in the USA market decreased, although the prices of MAA increased due to lower consumption from the downstream paints and coatings sector. The consumption of leather, adhesives, and paints industry was observed to decrease in the regional market due to off-season dullness. The demand for the Meth Acrylic Acid industry fell in the USA market during the period. Due to the abundance of shipments that were seen in the market during the quarter, the supply chain condition in the region was moderate, resulting in good product availability. US manufacturing orders to China were down because of weakening demand in the regional market.
Asia
US manufacturing orders in China are down because of unrelenting demand collapse in the regional market. The prices of Meth Acrylic Acid plummeted in the Asian market during Q4 of 2022, with a market value of USD 1948/ton Meth Acrylic Acid CFR Shanghai in December with a quarterly de-escalation of 2.3% as recorded by ChemAnalyst research team data. The supply of MAA in the Chinese market was largely high, with the availability of shipments with declining freight charges in the regional market. The inventories of Meth Acrylic Acid strengthened with lower consumption from the downstream paints and coatings market. Prices decreased due to fluctuating feedstocks (Acetone Cyanohydrin) and minimal use. The supply chain from China tends to be moving out along with the lockdown in the Chinese market due to Covid.
Europe
The prices of Meth Acrylic Acid plunged in the European market during the fourth quarter of 2022, with a market value of USD 2110/ton Meth Acrylic Acid FOB Hamburg in November, as per ChemAnalyst research team data. 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. The demand from the downstream paints and coatings industry de-escalated in the German market during the period. Large vessels were in the market, improving the trade and the supply in the region owing to improved logistics amid sluggish demand fundamentals.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, the prices of Meth Acrylic Acid were observed to be falling in the North American market, with prices ranging at USD 2520/tonne FOB USGC. The supply chain situation was good in the region, with higher product availability due to the abundance of shipments observed in the market during the period. As demand from the downstream market decreased, traders and suppliers witnessed an increase in their inventory. Prices decreased mainly due to fluctuating feedstocks (Acetone Cyanohydrin) and minimal use.
Asia
Meth Acrylic Acid prices have been facing a consistent decline since the start of the third quarter of 2022, owing to demand dullness from the domestic market and stockpiled inventories in the country. As per the sources, availability for the product remained high in the Chinese market during this quarter, while pandemic-related uncertainties did not let the demand rebound enough to support prices. The prices were hovering at USD 1978/ton Ex-Mumbai in September, as per recorded by ChemAnalyst pricing team data. Imports have also fallen in the last few months vindicating the demand decline.
Europe
The price of Meth Acrylic Acid was observed to fall in the European region during the third quarter of 2022, with prices ranging around USD 2480/tonne FOB Hamburg in August. German manufacturing firms anticipate that the supply-chain problems that have hampered output in Europe's largest economy will continue for at least ten more months. The demand from the downstream polymers industry fell with a fall in consumption in the region and weakening market sentiments. The supply chain situation was poor in the region, with lower product availability as shortages of shipments were observed in the market during the period with a fall in freight charges. The demand from the downstream paints and coatings industry elevated in the European market.
For the Quarter Ending June 2022
North America
North American Meth Acrylic Acid market stagnated throughout the quarter, while prices rose effectively and were primarily driven by the regional market's inflation. As per the data, the Acrylic Acid derivative market has been fluctuating since the start of the quarter, as the demand fundamentals remained stagnated or partially dull, but the inflationary pressure kept on affecting pricing dynamics. Furthermore, prices rose consistently for the initial two months and later declined by the end of the quarter. The prime factor behind this fall was a steep fall in demand from the international market, under the threat of rising stagflation conditions in the country.
Asia
During Q2 2022, the Asian market witnessed a mixed market sentiment for Meth Acrylic Acid, where the prices rose during the first half of the quarter and declined effectively in the other half. Furthermore, demand dynamics for the product remained dull throughout this timeframe, while raw material costs plunged effectively across Asia, especially in China during June 2022. Thus, as a consecutive effect, the price remained dull for downstream derivate Meth Acrylic Acid in the Asian market. In addition, the threat of global recession has also affected the market sentiments for the product in the regional market of Asia.
Europe
As per the market insights, the price of Meth Acrylic Acid remained buoyant during the first two months of Q2 2022, owing to high input costs amidst stagnated offtakes from the downstream niche buyers. The data shows the price of Meth Acrylic Acid tumbled in June 2022, after prolonged firmness since the start of this year. Market participants were concerned about the rising wavering demand dynamics from the regional market, as the threat of global recession was hovering around the head of major players in the market. However, high energy costs remained a concern, affecting the overall production costs of all the commodities.
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.
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.
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.
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.
