For the Quarter Ending March 2022
In North America, Methyl Methacrylate (MMA) prices showcased an upward trajectory in Q1-2022. Increase in the demand from the downstream paint and coating sector as solvent has weighed on the cost of MMA. Firm prices of upstream Coal impacted feedstock Methanol values, creating an imbalance in market dynamics, and resulting in a supply chain disruption. In addition, manufacturers raised the cost of MMA production due to the continuous price inflation of raw materials. Furthermore, the restriction of significant businesses between Russia and the USA with the ongoing war crisis resulted in the high energy cost. In the USA, Prices of MMA were settled at USD 2330/MT FOB UGSC during March.
During the first quarter of 2022, Methyl Methacrylate prices in Asia-Pacific showed a seesawed trend. In India, costs of MMA showcased fluctuation in Q1. In the initial quarter of the month, the MMA prices increased on the back of the supply shortage and rising demand from the downstream paint industries. High feedstock prices, including Acetone and Ethylene, have weighed on the high pricing of MMA in the region. In addition, increased freight charges due to container shortage resulted in the supply shortfall. During the mid of the quarter, prices dropped significantly by 1%. The decline in the prices was attributed to higher availability and increased supplies in the domestic market, which kept MMA prices in the downward trend. The costs of Methyl Methacrylate CFR JNPT USD 2328/MT in March.
In contrast to the last quarter of 2021, Methyl Methacrylate showed positive sentiments in Europe during Q1 2022. MMA prices showed an uptrend on the back of the limited availability of the product in the region. High upstream coal prices due to the Russian invasion of Ukraine have impacted feedstock Methanol, which influenced the prices of MMA in the region. Furthermore, due to the extended energy crisis in the European region, certain production units reduced their running rates to safeguard their margins. Methyl Methacrylate General Purpose Grade FD Hamburg prices settled around USD 4090/MT during March.
For the quarter Ending December 2021
Sluggish demand from domestic market amid weakening upstream cost led to a consistent decline in price of MMA during this period in US market. Key driving sector i.e., PMMA (Polymethyl Methacrylate) also showcased dull sentiments throughout the quarter, led to pilling up inventories of upstream commodities. Furthermore, ease in Brent crude oil price under the threat of heightening concern on Omicron variant across Asia, also supported this downward trajectory for MMA in USA. In addition, by the end of this year, most of the plant turnarounds in global market was ended and supplies was ample enough to satisfy the overall need. Conclusively, after tumbling for continuous three months MMA price hovered around USD 2260/MT during December.
Threat of Omicron variant has been affecting market dynamics of Asia since November, while deteriorating demand from the domestic market kept the market movement dull throughout Q4 2021. Chinese market has to battle with high production cost and production cuts forced by government in order to coordinate with dual energy policy and control emission ahead of Beijing Olympics. Meanwhile Omicron threat led to a significant decline in prices of crude oil and its derivatives in APAC market, which also includes MMA. Demand for MMA from downstream PMMA segment remained lacklustre, due to which prices of both of these commodities kept on declining in regional market. MMA price heard hovering around USD 1803/MT in India during December.
Soaring natural gas prices shook the market dynamics of European market during early Q4 2021. Taking pressure from exorbitant rise in input cost, major key players heard revising their offers to maintain profitability. European key player Röhm GmbH revised MMA price during October by around USD 147/MT with immediate effect. Meanwhile, during third week of October, prolonged sales control measure imposed by Röhm was finally lifted by the company in order to sustain offtakes and register better margin. In addition, Röhm has also announced maintenance turnaround during final week of March 2022 (23rd March to 31st March).