For the Quarter Ending June 2023
North America
Polymethyl Methacrylate prices have shown mixed sentiments in the US market during the second quarter of 2023. During the initial and mid-of Q2, PMMA prices have increased in the domestic market, backed by high demand and limited material availability. The cost pressure from the feedstock was sufficient as its prices progressed in an upward trend in the given time frame. Despite the higher interest rates and global headwinds, demand for PMMA from the downstream automotive industry has increased in the domestic market. As per the U.S. Bureau of Economic Analysis, data showed new cars were sold at a seasonally adjusted annual rate (SAAR) of 15.9 million in April, up 11.4% from a year earlier and up 7.2% from March. Furthermore, on the supply front, Imports from Asia and other exporting countries have remained steady as 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 the limited inventories in the US market. However, towards the end of Q2, PMMA prices drastically decreased due to low-cost pressure from feedstock MMA. Despite the economic woes, demand from the downstream automotive and construction has remained active in the domestic market. In addition, the availability of finished stock of PMMA was sufficient to cater to overall downstream demand, which weighed down the prices of PMMA. Therefore, prices of PMMA DEL Texas were assessed at USD 3110/MT with a month-on-month decrement of 6.3% during June 2023.
Asia-Pacific
Polymethyl Methacrylate (PMMA) prices have shown fluctuations in the South Korean market during the second quarter of 2023. During the initial and mid-Q2, PMMA prices have inched higher in the domestic market due to improved buying sentiments among the end-users. The cost pressure from feedstock MMA was sufficient as its prices progressed in an upward trend in the domestic market, reported by market participants. The inquiries from the downstream automotive and construction industries have remained active in the domestic market. At the same time, demand from the overseas market has also increased, which pushed up the prices of PMMA in the domestic market. As per the sources, new vehicle sales in South Korea increased by 7.4% in April amid the easing of supply shortages of semiconductors and parts. Although, towards the final of Q2, PMMA prices gained a downward trend in the domestic market amid steady demand and sufficient inventories. The feedstock MMA prices have remained stagnant, which resulted in the soft production cost of PMMA in the domestic market. The demand from the downstream construction and automotive industries has remained steady in the domestic market. The downstream procurements were mainly based on small orders. On the other side, the South Korean manufacturing purchasing manager's index increased slightly from 48.1 to 48.4 in May, compared with the previous month, but still below bar performance. Therefore, prices of PMMA FOB Busan were settled at USD 2089/MT with a month-on-month decrement of 2.0% during June 2023.
Europe
Polymethyl Methacrylate (PMMA) prices have continued to drop in the Italian market during the second quarter of 2023, backed by weak feedstock prices and sufficient inventories in the market. The inquiries from the downstream construction sector remained average in the domestic market. The enthusiasm of the terminal firm to enter the market was not strong, and market transactions were relatively flat in the domestic market. Although, demand from the other sectors, such as the automotive sector, has remained active and didn't lead to an increase in the price realization of PMMA. However, on the other hand, Italy's construction purchasing manager's index (PMI) slightly increased from 47.9 in May to 48.6 in June, but still below bar performance. In addition, feedstock MMA prices have continued to decline, which negatively impacts the production cost of PMMA in the domestic market. On the other side, the material availability has remained sufficient owing to steady inflows of cheap Asian imports and a stable domestic production rate which led to supply dominant market. Therefore, prices of PMMA FD Naples were assessed at USD 3798/MT with a month-on-month decrement of 10.0% during June 2023.
For the Quarter Ending March 2023
North- America
Prices of PMMA have witnessed an oscillating trend in the USA market during the first quarter of 2023. During January, PMMA prices increased due to high-cost pressure from the feedstock MMA prices. Demand from downstream automotive construction has increased slightly from the domestic and overseas markets. Although, during February, PMMA prices showed stagnancy with a marginal increment of 0.5% due to stable demand from the downstream automotive and construction industries while the material availability remained sufficient to cater to overall demand. However, during March, due to sluggish buying trends among the end-user, the PMMA price declined. Cost pressure from feedstock MMA has declined while the imports from the Asian market have remained steady, which resulted in better imported material availability. Also, the rate of container from China to the USA have edged lower. Furthermore, demand from the downstream automotive and construction industry witnessed a drop in demand. Meanwhile, the US Federal Reserve continued to tighten the monetary policy to curb inflation. Thus, prices of PMMA DEL Texas were assessed at USD 2930/MT during March 2023.
Asia-Pacific
PMMA prices have shown a see-saw trend in China during the first quarter of 2023. During the initial of Q1, PMMA prices dropped owing to sluggish demand from the downstream automotive and construction industries Market participants have reported firm availability of inventories at the ports and logistics have improved, resulting in increased material availability in the domestic market. Although, PMMA prices have significantly increased throughout mid of Q1 due to improved demand dynamics. In addition, imports from neighboring Japan and South Korea have turned costly as prices increased in the exporting countries as well. Furthermore, China's manufacturing activity rebounded in February as factories began to normal following years of Covid-19 disruptions. However, during the final of Q1, PMMA prices gained downward momentum on account of a slower demand outlook for the product from downstream industries. Market participants reported limited instances of new orders, which weighed down the prices of PMMA in the domestic market. Thus, prices of PMMA CFR Shanghai were assessed at USD 2092/MT during March 2023.
Europe
Throughout the first quarter of 2023, PMMA prices increased significantly in the European market after the holidays due to improved buying sentiments in the region. Operating rates have remained stable in the wake of stagnant consumption from the downstream industries. Although, feedstock MMA prices have increased, which resulted in the high prices of PMMA in the regional market. While the imports from the Asian countries have turned costly as a major manufacturer of PMMA, Kuraray has increased their PMMA prices in the Asian market. On the other side, demand for PMMA from the downstream automotive, construction, along with medical devices has risen slightly, thus strengthening the prices of PMMA in the regional market. As a result, prices of PMMA FD Hamburg were assessed at USD 4836/MT during March 2023.
For the Quarter Ending December 2022
North America
Polymethyl Methacrylate (PMMA) prices have continued their bearish rally in the US market during the fourth quarter of 2022 due to limited inquiries from the domestic market. In addition, production rates remained weak in the wake of stable consumption rates in the domestic market. The cost of production remained stable as Natural gas prices fell. Meanwhile, imports from Asia pacific region have strengthened amid a decline in freight charges. Furthermore, weak demand from the automotive, construction, and other competitive industries, along with sufficient material availability, forces the manufacturers to revise their price quotations. Thus, as a result, prices of Polymethyl Methacrylate General Purpose Grade DEL Texas were settled at USD 2857/MT with a month-on-month declination of 5.8% during December.
Asia- Pacific
Throughout the fourth quarter of 2022, prices of Polymethyl Methacrylate (PMMA) prices have continued their declining trend in the Chinese market, supported by the weak cost pressure from the feedstock MMA. Sufficient inventory levels along with gloomy demand have the other factor for the price drop in the domestic market. Furthermore, the ongoing lockdown measures in major cities amid rising pandemic cases lead to uncertainties in production, operation, and logistics. This exerted downward pressure on the end-user demand. Thus, as a result, prices of PMMA CFR Shanghai were assessed at USD 1900/MT during December. Although, in the South Korean market, PMMA prices demonstrated slight fluctuation. During October, PMMA prices showed upward stability owing to the stable demand from the downstream automotive and construction industries. At the same time, demand from the overseas market has also remained on the weak side amid sluggish buying sentiment. However, during November and December, prices have steeply fallen due to the low-cost pressure from the feedstock MMA prices. In conclusion, prices of PMMA FOB Busan were settled at USD 1717/MT in December.
Europe
Prices of Polymethyl Methacrylate (PMMA) have shown mixed sentiments in the German market throughout the fourth quarter of 2022. During October, PMMA prices rose by 2.2%, backed by the high-cost pressure from the feedstock Methyl Methacrylate (MMA). In terms of domestic production, operating rates remained under check as energy prices continued to climb higher. The supply chains in the market were disrupted due to prolonged port congestions and vessel bunching, which halted the supply flow of PMMA and, thus, limited the product availability in the market. In addition, Rohm has increased the prices of PMMA amid high energy costs. Although, during November and December, prices of PMMA declined on the back of sufficient inventory level and bearish demand from the downstream automotive and construction sector. Meanwhile, the supply has been supported by the cheap imported material, resulting in the price drop. Hence, as a result, prices of PMMA FD Hamburg were assessed at USD 3860/MT during December.
Prices of Polymethyl Methacrylate have shown a fluctuation in North America throughout the third quarter of 2022. At the beginning of the quarter, prices have shown upward stability owing to a consistent increase in feedstock Methyl Methacrylate prices. Stable demand from the downstream automotive and construction industries has been a key determinant for the steady price in the regional market. However, during the mid and end of the third quarter, the commodity’s price plunged gradually across the regional market due to the drop in the raw material Methyl Methacrylate prices. In addition, speculation of recession around the USA has dampened the demand from the downstream industries. At the same time, demand from the overseas market has also dropped due to the slowdown in the European economies. In addition, ease in the upstream natural gas costs has led to the low production cost of Polymethyl Methacrylate. Sufficient inventories coupled with weak demand have resulted in a price drop in the PMMA. As a result, in the USA, prices of PMMA DEL Texas were assessed at USD 3255/MT during September.
During the third quarter of 2022, Polymethyl Methacrylate prices have gained downward momentum in the South Korean market. The latest decline in the prices was induced by weak feedstock Methyl Methacrylate prices. Demand for Polymethyl Methacrylate has been subdued in domestic and overseas markets; thus, Polymethyl Methacrylate prices tumbled under the influence of stockpiled inventories. Furthermore, exports from South Korea to other Asian regions were affected as suppliers started to purchase the product on a need-to basis. Hence, prices of PMMA General Purpose grade FOB Busan were offered at USD 2108/MT with a monthly declination of around 2.3% during September 2022.
Polymethyl Methacrylate prices have shown a seesawed trend in the European region during the third quarter of 2022. During July, Polymethyl Methacrylate prices followed the stagnancy with a marginal decline of around 0.9%, supported by sufficient inventory levels and weak demand from the downstream industries. However, during August, Polymethyl Methacrylate prices rebounded due to increased feedstock Methyl Methacrylate costs. The high production cost of Polymethyl Methacrylate amid mounting energy costs has led to a price surge in the regional market. Demand from the downstream industries has dampened amidst high inflation rates. Though, the pricing sentiment deteriorated at the end of the third quarter as cheap imports from the Asian and North American regions entered European markets. Hence, as a result, prices of Polymethyl Methacrylate General Purpose FD Hamburg were assessed at USD 4265/MT during September 2022.
