For the Quarter Ending September 2023
North America
The prices of Methyl Methacrylate have demonstrated a downward trend across the US market throughout the third quarter of 2023. However, feedstock Acetone prices have shown an oscillating trend throughout the quarter. On the other hand, according to the US Bureau of Labor Statistics, the annual inflation rate in the US accelerated for a second straight month to 3.7% in August from 3.2% in July on the back of high energy prices. This rise in inflationary pressures has further taken a toll on the purchasing sentiments of the end-use industries. Meanwhile, demand for Methyl Methacrylate from downstream Polymethyl Methacrylate has remained steady in the domestic market. The downstream procurements were mainly based on a need-on-demand basis. In addition, the manufacturing firms were operating at stable rates as demand from the downstream industry had not fully recovered in the domestic market. In addition, the US manufacturing purchasing manager index remained in the contraction zone. Furthermore, the availability of finished stock of MMA was sufficient to cater to overall demand, which weighed down the prices of Methyl Methacrylate in the domestic market.
Asia- Pacific
Prices of Methyl Methacrylate have witnessed an oscillating trend across the Asian market throughout the third quarter of 2023. During the initial of Q3, prices of Methyl Methacrylate have demonstrated an upward trend in the South Korean market on account of a bullish buying trend in the domestic market. The high feedstock Acetone prices resulted in the high production cost of Methyl Methacrylate. On the demand front, the inquiries from the downstream Polymethyl Methacrylate industry have increased due to a rise in consumption from the end-user automotive and construction industry, which strengthened the prices of Methyl Methacrylate in the domestic market. However, during the middle of Q3, MMA prices have inched lower due to weak demand from both the domestic and international markets. Furthermore, South Korea's chemical exports in September dropped by 6.1% year on year to $ 3.82 bn, indicating a lukewarm global demand. Although, towards the end of Q3, MMA prices have gained pace. The latest production cuts announced by Saudi Arabia and Russia supported oil prices, extending their respective ongoing production and export cuts through the end of the year. Brent crude oil closed at USD 90/b while WTI crossed USD 85/b, which supported the aromatics prices in the optimistic direction. This has resulted in firm prices of upstream Acetone and culminated in increasing the cost of production of Methyl Methacrylate in the domestic market.
Europe
Prices of Methyl Methacrylate (MMA) have witnessed mixed trends across the European market during the third quarter of 2023. During the initial and mid of Q3, MMA prices have inched lower in the German market on account of bearish buying trends in the domestic market. The feedstock Acetone prices have decreased, resulting in the low production cost of MMA in the domestic market. Meanwhile, cheap competitive offers from the Asian market have further pressured the prices of MMA. On the other side, the firm inflationary pressure and high interest rates by the central bank have deteriorated the purchasing power of end-users. Meanwhile, demand for MMA from downstream PMMA industries has remained lackluster. The weak demand has kept exerting pressure on the seller's side as buyers either made limited purchases when needed or stayed in a wait-and-see perspective in the projection of additional decline. The worsening in downstream demand could be attributed to underperforming end businesses and economic uncertainties across the globe. However, toward the end of Q3, MMA prices have gained an upward momentum in the domestic market. Upstream crude oil prices have continued to rise due to production cuts by Saudi Arabia and Russia; consequently, the rise in feedstock Acetone prices has culminated in the increased cost support for MMA. Although demand has remained dull, it was insufficient to drive the prices of MMA in the domestic market.
South- America
Prices of Methyl Methacrylate have showcased a downward trend in the Brazilian market during the third quarter of 2023. The spiraling inflationary pressure and high interest have deteriorated the purchasing power of consumers. Meanwhile, demand for Methyl Methacrylate from the downstream Polymethyl Methacrylate has remained dull, which weighed down the prices of MMA in the domestic market. The market transactions were relatively light as the enthusiasm of the terminal firm to enter the market was not strong. Furthermore, According to Associacao Nacional dos Fabricantes de Veiculos Automores (ANFAVEA), Brazil vehicle sales reached 198,000 units in September 2023, 4.8 percent less than in August 2023 and 1.9 percent more than in September 2022, resulting in a low consumption of Methyl Methacrylate in the domestic market. On the other side, the imports from the exporting market, the USA, have remained steady in the Brazilian ports or market, which led to high material availability in the domestic market. Overall, there were no port congestion or supply chain disruption was reported by market participants in the given time frame.
For the Quarter Ending June 2023
North America
Methyl Methacrylate prices have shown mixed sentiments in the US market during the second quarter of 2023. During the initial and mid of Q2, MMA prices have inched higher in the domestic market, backed by high demand and limited material availability. The high inflationary pressure and rising interest rates have impacted the purchasing power of end-users. Despite the economic uncertainties, the inquiries from the downstream PMMA industries have increased as consumption from the end-user automotive industries has improved, pushing up the prices in the domestic market. At the same time, consumption from the overseas market has also increased, which promoted the manufacturers to increase their prices to gain some profit margins. On the other side, the US Ports of Long Beach and Los Angeles have witnessed a shortage of laborers and dockworkers, which eventually led to the shutdown of the ports, resulting in restrained inventories in the US market. However, towards the end of Q2, MMA prices decreased due to moderate demand from the downstream PMMA sectors. The downstream procurements were mainly based on immediate requirements reported by market participants. The oversupplies of feedstock Acetone have impacted the positive development of MMA in the domestic market. Therefore, MMA prices operated at a low level. Additionally, a major manufacturer of Methyl Methacrylate, Roehm America, having a production capacity of 160,00 MT/Year, announced that it will be closing its facility in Westwego, Louisiana, plant in June 2025.
Asia- Pacific
Methyl Methacrylate prices have increased in the South Korean market throughout the second quarter of 2023 due to improved buying trends among the end-users. Although, feedstock Acetone prices showed fluctuation throughout the quarter. The inquiries from the downstream PMMA sectors have increased as consumption from the automotive and construction have improved, which pushed up the prices of MMA in the domestic market. The market transactions were high as the enthusiasm of the terminal firm to enter the market was strong, as reported by market players. In addition, the operating rates remained high in the domestic market on account of increased downstream demand. The availability of finished stocks of PMMA was adequate to cater to the overall downstream demand. Overall, high downstream demand promoted the manufacturers to keep their prices in an upward trend in the domestic market. Although, towards the end of Q2, MMA prices have shown stagnancy with marginal increment backed by moderate demand and sufficient inventories in the domestic market. Furthermore, South Korea's inflation rate dropped from 3.3% in May to 2.7% in June, which strengthened the purchasing power of end-use industries.
Europe
Methyl Methacrylate (MMA) prices have continued to drop in the German market throughout the second quarter of 2023 owing to tepid demand and sufficient inventories. Although, feedstock Acetone prices have shown fluctuations during the quarter. The firm inflation rates and consequent rise in interest rates to contain it had a heavy toll on the demand fundamentals. As per the sources, inflation in Germany increased in June to 6.4% year-on-year, from 6.1% YoY in May, further pressuring the purchasing power of the end-use industries. Meanwhile, the inquiries from the downstream Polymethyl Methacrylate sector remained soft, resulting in decreasing consumption rates, supporting the downshift in the prices of MMA in the domestic market. Additionally, the operating rates remained under pressure in the domestic market while the steady inflows of cheap imports from the Asian and other exporting nations have led to sufficient inventories in the domestic market. Moreover, a major manufacturer of MMA, Rohm in Wesseling, has shut down its MMA plant amid maintenance turnarounds, although it had not impacted the prices of MMA as there were sufficient inventories in the domestic market.
South America
Methyl Methacrylate prices have increased in the Brazilian market throughout the second quarter of 2023 owing to improved buying trends among the end-users. The inquiries from the downstream PMMA sectors have remained active as consumption from the automotive and construction (end-users) sector have increased, which strengthened the prices of Methyl Methacrylate in the domestic market. The market transactions were relatively strong, reported by the market participants. In addition, imports from the US have remained slow at the Brazilian ports as the US Ports of Long Beach and Los Angeles have witnessed a shortage of labor and dockworkers, which eventually led to the shutdown of the ports. Furthermore, the availability of finished stocks of MMA was inadequate in the domestic market. However, towards the end of the quarter, the supply improved as US ports operated normally without any congestion. Moreover, as per the sources, Brazil's inflation rate declined from 3.94% in May to 3.16% in June, the lowest since September 2020 and broadly in line with market forecasts, which further strengthened the purchasing power of the end-user sector.
In the USA market, MMA prices have shown fluctuation during the first quarter of 2023. During the initial and mid of Q1, MMA prices showed upward stagnancy due to stable demand from the downstream PMMA industries while the supplies remained sufficient to cater to overall demand. Additionally, production cost has remained stable as upstream natural gas prices dropped in the domestic market. Furthermore, a major manufacturer of MMA Dow Chemical in Deer Park, Texas, USA, with a production capacity of 475,000 mt/year, has shut down their MMA plant during the mid-Feburary due to maintenance turnaround. Although, at the final of Q1, MMA prices decreased in the domestic market due to sluggish demand sentiments and ample material availability in the market. Furthermore, the US market has witnessed a drop in new orders, as reported by the market participants. Overall, demand from downstream value chains PMMA has remained subdued from the domestic and overseas markets. At the same time, PMI has dropped below 50 (i.e., 47.3), signifying a contraction in manufacturing and industrial activity. Thus, MMA prices showed a downward trend in the domestic market.
Prices of MMA have shown mixed sentiments in China during the first quarter of 2023. During January and February, MMA prices increased after the New Year holidays as market participants restocked the material available in the domestic market. Although, demand for MMA from the downstream PMMA industries has remained stagnant. Market participants reported fewer inquiries from the end users. On the other hand, China's PMI rose from 50.1 to 52.6 in February, signifying an increment in both industrial and production activities. Although, during March, MMA prices declined in the domestic market due to dull buying sentiments coupled with ample availability of material. In addition, demand for MMA from the downstream PMMA industries has remained gloomy, which further weighed down the prices of MMA in the domestic market. At the same time, the imports from South Korea and Japan have remained steady, which resulted in adequate material availability in the Chinese ports or market.
Throughout the first quarter of 2023, Methyl Methacrylate (MMA) prices have increased significantly in the European market on account of improved buying sentiments in the region. Operating rates have increased in the wake of improved consumption from the downstream industries. In addition, raw material Acetone prices have increased, which resulted in the high production cost of MMA in the regional market. Furthermore, Rohm (a major manufacturer of MMA) has increased run rates at its European plant in worms and Wesseling to accommodate the demand going into 2023. On the other side, demand for MMA from the downstream PMMA industries has risen slightly, thus strengthening the prices of MMA in the regional market.
