Roehm plans to close Methyl Methacrylate plant in Louisiana, while Prices remain Volatile in the US and Asia

Louisiana (USA): Despite the high feedstock Acetone prices, Methyl Methacrylate prices have continued to drop in the South Korean market while in the USA market, Methyl Methacrylate prices have remained stagnant during the last week of June 2023. Moderate downstream demand and sufficient inventories in the regional market have supported the current pricing trend of Methyl Methacrylate.

Methyl Methacrylate prices have dropped in the South Korean market. The inquiries from the downstream Polymethyl Methacrylate have remained stagnant. The market transactions were mainly based on small orders as the enthusiasm of the terminal firms to enter the market was not strong. On the supply front, the availability of finished stocks has remained sufficient amidst a decline in new orders, supporting the downshift in the prices of Methyl Methacrylate. In addition, the operating rates were under pressure in the domestic market as manufacturers were avoid building up the excessive inventories in the market. On the other side, South Korea's purchasing manager’s index dropped from 48.4 in May to 47.8 in June, indicating a contraction in both industrial and manufacturing activity. As per the market sources, South Korea's export rate continued to decrease, and shipments to China fell by 19.0%, the smallest decline since October consequently impacting the market sentiments of Methyl Methacrylate. Thus, as a result, prices of Methyl Methacrylate FOB Busan were settled at USD 1539/MT with a week-on-week decrement of 1.8% during the week ending 30th June.

On the other side, Methyl Methacrylate prices have remained unchanged in the USA market as demand from the downstream Polymethyl Methacrylate has remained stable with no major fluctuation observed from the previous week. In addition, spiralling inflation across the US market has eroded the purchasing power of consumers. Furthermore, Federal Reserve Chairman Jerome Powell indicated that two additional rate hikes are planned for this year to control the mounting inflation. Moreover, the US purchasing managers’ index declined from 46.9 to 46.0 in May, indicating a contraction in new orders. The level of inventories has remained adequate in the domestic market which promoted the producers to keep their prices roll-over for this week. Therefore, prices of Methyl Methacrylate FOB USGC were assessed at USD 2090/MT during the same time frame.

Additionally, a major manufacturer of Methyl Methacrylate, Roehm America having a production capacity of 160,00 MT/Year announced that it will be closing its facility in Westwego, Louisiana, plant in June 2025. The plant will continue to operate normally and producing material along with supplying in the market until the scheduled closure in 2025. This comes as construction progresses on schedule for the company’s new Methyl Methacrylate in Bay City, Texas. Once completed the new plant will produce 250 KTPA of Methyl Methacrylate MMA) with production expected to begin in H1 of 2024. As per the President of Roehm America, Jack Chenault stated that the closure of the Westwego plant comes after strategic financial and production network analysis, taking into account the improved efficiency and distribution that our future Bay City, Texas, plant will provide.” Further, he concluded, the shutdown of the Westwego plant will impact about 70 salaried and hourly employees, while once completed, the plant in Bay City will create approximately 70 direct jobs.

According to ChemAnalyst anticipation, “ in the upcoming quarter, Methyl Methacrylate prices are projected to increase but at a slower pace in the US and Asian markets on account of improved demand from the downstream Polymethyl Methacrylate and other sectors. Furthermore, feedstock Acetone prices are expected to increase which may positively impact the production cost of Methyl Methacrylate in the upcoming weeks.”