Amidst Moderate Demand, Elevated Feedstock Cost Pressures the Methyl Methacrylate Prices

Despite the stable demand from the downstream industries, Methyl Methacrylate prices have increased in the USA and Asian markets during the third week of April 2023. In addition, plant shutdown amid maintenance turnaround, along with steady imports from the exporting country and high inflation across the USA market, has further raised the prices of Methyl Methacrylate in the region.

In the Chinese market, Methyl Methacrylate prices have inched higher, backed by high-cost pressure from feedstock Acetone prices. Demand from the downstream Polymethyl Methacrylate industries has remained stable in the domestic market. Overall, supply and demand were balanced, manufacturers gave up profits to sell, and downstream procurement was based on a need-to-need basis. Meanwhile, market participants have reported that demand fundamentals may strengthen further into the quarter resulting in improved pricing dynamics for Methyl Methacrylate. In addition, domestic operating rates have been moderate while the supply from neighboring South Korea and Japan (exporting countries) has remained steady; this resulted in ample material available on the Chinese shores. Furthermore, the manufacturer of Methyl Methacrylate, Shandong Hongxu Chemical in Dongying Shandong, China, having a 125,000 MT/year production capacity, has shut down their Methyl Methacrylate plant due to maintenance turnaround. As per the sources, the plant is expected to restart in the last week of April 2023. Thus, Methyl Methacrylate Ex- Qingdao prices were assessed at USD 1607/MT during the week ending 21st April 2023.

In addition, a major manufacturer of Methyl Methacrylate, Mitsubishi Chemical UK at Billingham (Cassel), UK has a capacity of 200,000 tonnes/year, has confirmed the closure of its Methyl Methacrylate plant, which may lead to a supply shortage in the European market.

On the other hand, Methyl Methacrylate showed stagnancy with a marginal increment of USD 12/MT in the USA market, backed by the steady demand from the downstream Polymethyl Methacrylate industry and ample supply in the market limited. There were limited instances of new orders, as reported by market players. As per the sources, supply chain bottlenecks have improved, resulting in smooth cargo transportation. Hence, prices of Methyl Methacrylate were settled at USD 2141/MT during the same time frame.

As per ChemAnalyst's anticipation, "Methyl Methacrylate prices will rise at a slower pace in the USA and Asian market. At the same time, consumption from the downstream Polymethyl Methacrylate industry will likely remain stagnant in the upcoming weeks.