Polymethyl Methacrylate Prices Show Bearish Trend in Asia and Europe Due to Weak Feedstock Costs

Since the commencing of June 2023, Polymethyl Methacrylate prices have witnessed a bearish trend in the Asian and European markets backed by weak cost support from feedstock Methyl Methacrylate. Tepid downstream demand, although consumption from the automotive industry, was surprisingly increased in the region. Moreover, the slowdown in Chinese economic recovery, speculation of recession across the Eurozone, and rising interest rates to combat inflation have further dampened the market sentiments of Polymethyl Methacrylate.

As per the recent estimation, the prices of Polymethyl Methacrylate have experienced a downtrend in the Chinese market. The oversupply of feedstock Methyl Methacrylate has limited the positive development of Polymethyl Methacrylate. Meanwhile, material availability remained ample amid steady inflows of imports from South Korea and Japan and moderate domestic operating rates. On the other side, the inquiries from the downstream construction sector remain in decline amid economic slowdowns. Market players reported construction sales in June dropped by 28.1%, implying that the sector remains in crisis and continues to weigh on the country’s economy as manufacturers suffer amid a lack of buyer confidence. However, new vehicle sales in China surged by 28% during June, and it had limited bearing over the prices of Polymethyl Methacrylate. On the other side, low-cost labor has further weighed down the prices of Polymethyl Methacrylate in the domestic market. Therefore, Polymethyl Methacrylate CFR Shanghai prices were settled at USD 2023/MT with a month-on-month decrement of USD 27/MT during June 2023.

Conversely, Polymethyl Methacrylate prices have declined drastically in the German market, supported by weak feedstock Methyl Methacrylate prices. Moreover, sufficient inventories and a decline in freight charges have supported the downshift in the prices of Polymethyl Methacrylate. Meanwhile, the demand from the downstream construction sector remained tepid owing to a lack of investment and financial uncertainty. Germany’s construction purchasing managers index declined to 41.4 in June from 43.9, compared with the previous month, reported by market players. Despite the weak economic conditions, demand from the automotive sector has surprisingly rebound in the domestic market. As per the KBA motor transport authority data, new vehicle registration surged by 25% in June due to strong demand for electric vehicles and easing the order backlog initiated by supply shortages and the Covid-19 pandemic. Although, the manufacturing activity in Germany witnessed a contraction since Q1 of 2023, suggesting a decline in manufacturing and industrial activity along with a decline in new orders ahead of rising interest rates and mounting inflationary pressure. As a result, Polymethyl Methacrylate FD Hamburg prices were assessed at USD 3881/MT with a monthly decrement of USD 292/MT during the end of Q2.

According to ChemAnalyst, Polymethyl Methacrylate prices are expected to increase in the Asian and European markets, backed by a rise in demand from the downstream automotive, construction, and other sectors. At the same time, feedstock Methyl Methacrylate is likely to improve, which might positively impact the prices of the downstream product. Furthermore, high-interest rates, high inflation, and slow economic recovery may further affect the prices of Polymethyl Methacrylate.