European PMMA Prices on Rise Amid Supply Crunch While US Finds Stability

Hamburg, (Germany): Prices of Polymethyl Methacrylate (PMMA) have strengthened across the European market during the last week of September 2024. The double whammy of supply shortages and high upstream costs has continuously encouraged traders to test PMMA markets with a series of price hikes. Despite this, the regional PMMA spot market appears stable to soft, with buyers reporting continued sluggishness in the downstream market coupled with low confidence. In the short term, participants across the regional market are questioning the sustainability of these price increases in October, amidst opposing factors: persistent supply issues and shipping disruptions on one side, and stable to low demand on the other. Meanwhile, PMMA prices have mainly roll over in the US market as fundamentals of demand and supply was largely balanced across the regional market.

Towards the last week of September, PMMA prices have showcased an increment of USD 40/MT in the German market. The feedstock Methyl Methacrylate has been observed on the positive end which resulted in the high production cost of PMMA in the domestic market, leading to an upward shift in the price realization of PMMA among the manufacturers. Furthermore, the supply of PMMA has remained tight due to ongoing production cuts coupled with reduced import offers from the exporting source notably the US and Asia which keep the prices elevated in the German domestic market. Thus, prices of PMMA FD Hamburg were settled at USD 3940/MT during the week ending 27th September.

Even though, demand for PMMA downstream automotive, coating as well as from construction sectors has been slower than expected. The spot market transactions were also low, with several buyers remaining on the sidelines. Despite this tepid demand, the supply constraints have limited any significant downward pressure on PMMA prices.

While PMMA prices have witnessed no major changes in the US market during the same period. The demand for PMMA from the downstream automotive and construction industry has continued to remain subdued with a limited instance of new orders reported by market player. As per the market report, US automakers reported a fall in their third-quarter sales, hurt by fewer selling days and weaker consumer spending amid inflationary challenges and higher interest rates. Moreover, General Motors reported a 2.2% fall in quarterly sales, as demand weakened. Additionally, the current supply of PMMA was relatively low to meet the existing demand keeping the prices flat in the domestic market. Consequently, prices of PMMA DEL Texas were settled at USD 3910/MT on 27^th September 2024. 

Looking ahead, ChemAnalyst anticipates prices of PMMA might increase across the US and European markets amidst a rise in feedstock MMA prices. However, demand from the downstream derivative industry is expected to remain stable during the given time frame. Also, major producers of PMMA like Rohm in Germany and MCM in the US will increase the prices of PMMA which is effective from October 1^st. Furthermore, the supply of PMMA is expected to remain tight across the regional market which may further put an additional pressure on the prices of PMMA.