For the Quarter Ending September 2024
North America
The third quarter of 2024 saw a notable uptrend in Methyl Methacrylate (MMA) prices across the North America region, driven by several contributing factors. Tight supply conditions, reduced operating rates, and lower import volumes created a constrained market, fueling bullish sentiments among producers.
In Mexico, the price surge was particularly significant, with the downstream Polymethyl Methacrylate (PMMA) industry playing a key role in driving demand and price increases. MMA prices in the region recorded a substantial 68% rise compared to the same quarter in 2023, showcasing the strong market momentum.
Furthermore, prices increased by 26% from the previous quarter, indicating a steady upward trend. This was particularly evident in the second half of the quarter, which experienced a 25% price hike compared to the first half, further emphasizing the strengthening market. By the end of Q3, MMA prices in Mexico reached USD 3410/MT CFR Manzanillo, reflecting the prevailing positive market conditions and continuous upward trajectory seen throughout the quarter.
APAC
The third quarter of 2024 witnessed a notable increase in Methyl Methacrylate (MMA) prices across the APAC region, driven by several pivotal factors. Limited supplies, attributed to reduced operating rates at manufacturing facilities, combined with sluggish demand from downstream industries such as Polymethyl Methacrylate (PMMA), and escalating feedstock Acetone costs, significantly influenced the market dynamics. These supply-demand imbalances fostered a bullish market sentiment, resulting in stable or slightly lower prices in some areas. In Japan, the price fluctuations were particularly pronounced, with a remarkable 32% increase compared to the same quarter last year. On a quarter-on-quarter basis, prices rose by 4%, and a comparison between the first and second halves of the quarter showed a 3% increase, further highlighting the upward trend. The quarter-ending price of USD 2100/MT for Methyl Methacrylate FOB Tokyo underscores the continued positive pricing environment in Japan, reflecting the overall increasing trend throughout the APAC region during Q3 2024.
Europe
In the third quarter of 2024, Methyl Methacrylate (MMA) prices in Europe experienced a modest increase of 0.8%, reaching USD 2550/MT CFR Antwerp by early September. This slight rise was attributed to a constrained supply, with reduced imports from Asia and low domestic production rates due to limited feedstock Acetone availability. Although the supply side remained tight, demand from key downstream sectors, including Polymethyl Methacrylate, automotive, and construction, was notably sluggish. Europe’s auto sales fell by 20.6% in August, contributing to dampened purchasing activity. The broader economic slowdown also weighed on consumer confidence, resulting in tepid buying interest for MMA. While supply is expected to improve slightly later in the quarter as production normalizes, demand recovery is uncertain. The subdued downstream consumption and lackluster construction sector activity are likely to keep demand soft in the near term. Despite the tight supply, market participants remain cautious, with hopes of a slight improvement in demand toward the end of September or early October.
South America
Throughout Q3 2024, the Methyl Meth Acrylate (MMA) pricing in the South America region has experienced a significant uptrend, with Brazil showcasing the most notable price changes. The market dynamics have been influenced by several key factors. Tight supply conditions due to reduced imports from major markets, low operating rates in exporting countries, and production disruptions have constrained the availability of MMA, leading to increased prices. Strong demand from downstream industries like Polymethyl Methacrylate, particularly in the automotive and construction sectors, has further bolstered the market sentiment. The correlation between supply shortages and rising demand has propelled the price escalation. In Brazil specifically, the pricing environment has been characterized by a consistent upward trajectory. The quarter saw a substantial 67% increase from the same period last year, demonstrating the significant price growth. Moreover, compared to the previous quarter in 2024, prices surged by 26%, indicating a rapid escalation in a short timeframe. Notably, there was a substantial 25% price difference between the first and second half of the quarter, underlining the dynamic nature of the market. As Q3 drew to a close, the latest price for Methyl Meth Acrylate (MMA) CFR Santos in Brazil stood at USD 3440/MT, reflecting the prevailing positive pricing environment.
For the Quarter Ending June 2024
North America
Throughout the second quarter of 2024, Methyl Methacrylate prices have remained on a firm note across the US market, with supply constraints coming to the fore and mitigating the impact of weak raw material prices in the domestic market. The domestic demand for MMA from the downstream Polymethyl Methacrylate (PMMA) industry has increased as consumption from the automotive sector has improved, leading to an upward shift in the price realization of MMA. As per the market sources, US new vehicle sales of 1,444,543 units for May represented an increase of 8.8% in April while 5.0% from one year ago in May 2023, with gains primarily from domestic sales as sales of overseas vehicles softened.
Furthermore, a major producer of downstream PMMA, Rohm significantly expanded its production capacity at the Wallingford plant in Connecticut (USA) in June 2024 to strengthen the market position of its specialty PMMA moulding compounds. The innovative improvement was possible by modifying and redeploying an existing production line at the Wallingford site, providing customers with faster delivery and meeting increasing demand globally. Consequently, demand for MMA has also boosted as MMA is the major raw material for PMMA.
However, feedstock has showcased mixed signals throughout the month. On the macroeconomic front, the annual inflation in the US slowed to 3.3% in May 2024, below 3.4% in April but still above the hope of the Federal Reserve which is 2%. On the supply side, the material availability was limited as the operating rates of MMA continued to be extremely low and a structural return to more normal operating rate levels is not expected in the coming quarter. Moreover, several market participants speculate, that the upcoming hurricane season as well as other weather disruptions will impede the production and logistic activities and is likely to exacerbate the further short supply situation of MMA in the domestic market. Thus, prices of Methyl Methacrylate FOB USGC were settled at USD 2488/MT during June 2024.
Asia- Pacific
The prices of Methyl Methacrylate have inched higher in the South Korean market during the second quarter of 2024 owing to limited inventories. The cost support from feedstock was sufficient on Methyl Methacrylate as its prices increased throughout the month which supported the prices to follow an uptrend in the domestic market. Additionally, demand for Methyl Methacrylate from the downstream Polymethyl Methacrylate was largely stable in the domestic market. Most market transactions were mainly based on a need-on-demand basis. At the same time, inquiries from the overseas market have been observed on the higher end in the midst of restocking and concern about supply disruption which further promoted the manufacturers of Methyl Methacrylate to raise their export prices. As per the market source, overall South Korea's May export to China increased by 7.6% year on year to $ 11.4 billion, the highest in 19 months, while shipments to the US increased at a faster rate of 15.6% to $10.9 billion. On the macroeconomic front, South Korea's inflation rate slowed to a 10-month low in May but remained above the central bank 2.0% target, likely reinforcing views that the bank is in no rush to start easing its monetary policy. Additionally, the availability of Methyl Methacrylate was limited as production of Methyl Methacrylate has been hampered due to the restricted supply of raw material in the domestic market. Moreover, several manufacturing firms have been operating at reduced rates in the domestic market, resulting in a supply shortage in the domestic market. Therefore, prices of Methyl Methacrylate FOB Busan were settled at USD 2105/MT during June 2024.
Europe
Prices of Methyl Methacrylate have continued to rise across the German market during the second quarter of 2024 as major producer Rohm has increased the prices of Methyl Methacrylate. However, feedstock prices decreased throughout the quarter, though it had a limited impact on the prices of Methyl Methacrylate. In addition, the demand for Methyl Methacrylate from the downstream PMMA has improved due to a rise in consumption from the end-user automotive industry, leading to an upward shift in the price realization of Methyl Methacrylate. In the broader economic context, German inflation fell more than expected in June, resuming its downward trend after two consecutive months of increases, and leaving the door open for another rate cut by the European Central Bank in September. According to preliminary data from the Federal Statistics Office, inflation eased to 2.5% in June, down from 2.8% in May. On the other hand, the European Central Bank reduced its interest rates by 25 basis points on June 12. This was the first decrease in interest rates since 2019. The decline in inflation rates has further improved consumer buying sentiments. Regarding domestic production, manufacturing firms have been operating at reduced rates in the wake of economic uncertainties. The material availability was limited to meet the downstream demand, keeping the prices upward in the domestic market. At the same time, imports from the Asian market have also turned costly amid tight supply which resulted in the high imported prices of Methyl Methacrylate. Additionally, spot ocean freight charges from Asia to Europe surged well ahead of contract rates as vessel capacity tightened even more owing to the ongoing Red Sea crisis. As per the market sources, freight charges from Asia to North Europe were settled at $4,000/FEU following adverse weather and congestion at the Asian ports.
South America
Prices of Methyl Methacrylate have continued to rise in the Brazil market during the second quarter of 2024 supported by limited inventories. However, domestic demand for Methyl Methacrylate from the downstream Polymethyl Methacrylate industry has been muted throughout the quarter. The market player report, the consumption from the end-user automotive and construction sector has been slowed down across the domestic market. According to the sector association of ANFAVEA, the automotive production in Brazil reached 166,700 units in May, 24.9 percent less than in April and 26.8 percent in May 2023, consequently dampening the demand for MMA in the domestic market. On the macroeconomic front, Brazil’s annual inflation picked up more than expected in May, reflecting the damage from recent disastrous floods in the south. The firm inflationary pressure has further eroded the purchasing power of consumers. Although, Brazil's economy rebounded in the first quarter from a sluggish second half of 2023 on stronger investments, adding to caution at the central bank, which has slowed the pace of interest-rate cuts. Additionally, shipments of Methyl Methacrylate from the Asian markets have been delayed owing to severe congestion at the Key Asian ports in May which resulted in a supply shortage in the Brazil domestic market. Furthermore, market players speculate that the congestion is expected to last through Q3 of 2024 and is likely to exacerbate the further short-supply situation of Methyl Methacrylate material in Brazil. Thus, prices of MMA CFR Santos were settled at USD 2574/MT with a month-on-month increment of 7.0% during June 2024.
For the Quarter Ending March 2024
North- America
Methyl Methacrylate (MMA) prices have showcased fluctuating trends across the US market during the first quarter of 2024. During the initial of Q1 2024, MMA prices have inched lower in the domestic market. However, feedstock Acetone prices have increased throughout the month, but it had a limited bearing on the prices of MMA in the domestic market.
In addition, demand for MMA from the downstream Polymethyl Methacrylate was soft due to macroeconomic headwinds which weighed down the prices of MMA in the domestic market. However, towards the end of Q1 2024, MMA prices started to rise due to the reduced operating rates in the previous month amidst the holiday season, and tepid demand has led to restricted availability of MMA. As a result, to gain profit margins, the manufacturers have raised their offers. In addition, demand from the downstream PMMA has increased due to a rise in consumption from the automotive and construction.
Apart from this, shipping disruptions in the Red Sea, along with traffic constraints in the Panama Canal and deep-freezing temperatures in the US, impacted the supply of MMA within the domestic market. As a result, prices of MMA operated at a high level. In addition, Mitsubishi Chemical America could make a final investment decision (FID) on a new methyl methacrylate (MMA) plant in the US in the second quarter, with start-up possible in 2028.
Asia- Pacific
Methyl Methacrylate (MMA) prices have shown a see-saw trend in the Asian market during the first quarter of 2024. During January 2024, MMA prices have inched higher in the Japanese market. The feedstock Acetone prices have increased, resulting in the high production cost of Methyl Methacrylate, supporting the prices to follow an uptrend in the domestic market. Furthermore, on January 1, 2024, a strong earthquake of magnitude 7.6 occurred near the Noto Peninsula in Ishikawa Prefecture, Japan impacted the production and industrial activity of Methyl Methacrylate, thus hampering the supply of Methyl methacrylate within the domestic market. However, in the midst of off-season dullness and tepidness in the global economy, the demand for Methyl Methacrylate from the domestic and international markets has been underwhelming and thus, the pace of inquiries from the downstream Polymethyl Methacrylate industry has remained subdued due to slow consumption from the end-user automotive and construction sector. As a result, prices of MMA have been observed on the lower end during February 2024. However, MMA prices have unexpectedly increased during March 2024 due to the high-cost pressure from feedstock Acetone. In addition, the manufacturing firms have been operating at low rates, leading to the limited stock of Methyl Methacrylate within the domestic market. Moreover, the involvement of Yemen's Houthi group in incidents concerning commercial ships at the southern end of the Red Sea has disrupted transportation routes which further encouraged the manufacturers to raise their MMA prices.
Europe
Methyl Methacrylate (MMA) prices have witnessed a mixed trend in the European market during the first quarter of 2024. In early Q1 2024, persistent downward pressure lingers across the German MMA market supported by a lack of demand recovery in key consumer industries. The cost support from feedstock Acetone was limited to MMA as its prices settled on the lower end, supporting the prices to follow a downward trend in the domestic market. Furthermore, the persistent inflation and high-interest rates have dampened the purchasing power of consumers and deteriorated the market fundamentals of MMA in the domestic market. Meanwhile, demand from the downstream Polymethyl Methacrylate industry has remained average in the domestic market due to less consumption from the construction sector which weighed down the prices of MMA. However, MMA prices have recovered towards the end of Q1 of 2024. The feedstock Acetone prices have strengthened followed by strong crude oil prices which resulted in the high production cost of MMA in the domestic market. Furthermore, the supply of MMA was limited as major producer Rohm had declared shipping limitations for Methyl Methacrylate due to a planned turnaround in Worms and the Easter holiday, further supporting the prices to follow an uptrend in the domestic market. Moreover, demand from the downstream Polymethyl Methacrylate was improved marginally as consumption from the automotive sector has rebounded within the domestic market.
South- America
Methyl Methacrylate (MMA) prices have demonstrated a mixed bag in the South- American market during the first quarter of 2024. During the first half of Q1 2024, MMA prices have witnessed a bearish rally in the Brazilian market. The inquiries from the downstream Polymethyl Methacrylate industry have remained weak with limited instances of new orders reported by the market players, leading to the downward shift in the price realization of MMA in the domestic market. In addition, Buyers are waiting for more clarity amid the ongoing war and growing economic problems. On the other side, Brazil’s monthly inflation probably sped up in December which eroded the purchasing power of end-users and further deteriorated the market sentiments of MMA. However, in the second half of Q1 2024, MMA prices gained an upward momentum as prices increased in the exporting market. Furthermore, the demand from the downstream PMMA has recovered due to a rise in consumption from the automotive and construction sector which boosted the prices of MMA in the domestic market. According to ANFAVEA, New vehicle sales in Brazil surged by 13.6% from the prior month to 188 thousand units in March 2024, after rising by 2.2% in the previous month. Meanwhile, imports from the US have turned costly as prices increased in the exporting market which in turn led to high import prices of MMA in the Brazil market. Furthermore, as a result of ongoing convoy transit restrictions due to lower water levels in the Panama Canal and safety concerns in the Red Sea, voyages are being rerouted through alternative routes, leading to increased transit times. Overall, low inventory levels at several warehouses also stayed behind the cautiously improving demand.
For the Quarter Ending December 2023
North- America-
Prices of Methyl Methacrylate have persistently increased in the US market during the fourth quarter of 2023. As a major producer, Roehm in Darmstadt, Germany, has raised prices for Methyl Methacrylate (MMA) and other Methacrylate monomer products in the United States that is effective from 1st November 2023. Similarly, another manufacturer of Methyl Methacrylate, Mitsubishi Chemical Methacrylate (MCM) has also independently announced a price increase in November. These pricing adjustments cast light on the obscured challenges that companies operating in the Methacrylate market, particularly within the United States, are currently confronting.
The cost support from feedstock Acetone was sufficient on Methyl Methacrylate as its prices settled on the higher side in the domestic market. These supported the prices to follow an upward trend in the domestic market.
The demand for Methyl Methacrylate from downstream Polymethyl Methacrylate has been rising and the same can be seen in the prices of PMMA, thus the consumption of MMA has been firm in the domestic market. The performance of the construction industry has been firm and continues to strengthen on the back of improved housing output. Therefore, prices of Methyl Methacrylate operated at a high level in the domestic market.
Asia-Pacific-
Throughout the fourth quarter of 2023, Methyl Methacrylate prices have consistently faced declines in the South Korean market. The bearish market sentiments can be attributed to subdued demand from the downstream Polymethyl Methacrylate industry. With limited transactions occurring in the downstream market, domestic inventory levels have risen, leading manufacturers to adjust their quotations downward.
Concurrently, South Korean inflation saw an uptick, reaching 3.8% in October, surpassing the target set by central banks. This rise in inflation has negatively impacted the purchasing power of end-use industries. Despite the conclusion of the Golden Week Holidays in China, demand remained sluggish due to the lackluster performance of the downstream industry. Market sources reported a 9.5% year-on-year drop in shipments to China, South Korea's largest export market, reflecting weaknesses in the world's second-largest economy.
Regarding raw materials, the impact of cost pressure from feedstock Acetone on Methyl Methacrylate was limited, as Acetone prices settled at the lower end during the specified time frame, thereby supporting the prevailing price trend of Methyl Methacrylate in the domestic market. Additionally, despite OPEC cuts and tensions in the Middle East, South Korea maintained strong trade relations with major Persian Gulf oil producers, evident in the increased imports of sour crude from Saudi Arabia, the UAE, and Qatar. This dynamic effectively supplemented manufacturing firms, including those producing Methyl Methacrylate.
Furthermore, inventories have accumulated domestically due to a consumption slowdown, placing added pressure on producers to clear their inventories as the year-end approaches.
Europe-
Prices of Methyl Methacrylate have witnessed a bullish trend in the German market during the fourth quarter of 2023. The feedstock Acetone prices have increased which resulted in the high production cost of Methyl Methacrylate in the domestic market. These supported the prices to follow an upward trend in the domestic market.
However, demand for Methyl Methacrylate from the downstream Polymethyl Methacrylate has remained subdued in the domestic market. The consumption of Polymethyl Methacrylate from the automotive, and construction sectors has been slowed down amid macroeconomic headwinds and low seasonality, but it was insufficient to drive the price realizations of Methyl Methacrylate at the lower side in the domestic market.
In addition, the operating rate of the manufacturing firm has been low since Q3 of 2023 as demand from the downstream industry has not improved yet. Moreover, the German manufacturing Purchasing Manger Index remained in the contraction zone, which is below 50, mirroring a deterioration in industrial and production activity. According to federal statistics, German industrial production unexpectedly decreased by 0.7% in November 2023. Market players speculate economic uncertainty and weak operating rates are expected to limit prospects for an MMA recovery in 2024. Due to low production activities, the material availability was limited to cater to overall downstream demand which encouraged the manufacturers to raise their offers throughout the quarter. On the other hand, following increased attacks by the Iran-backed Houthis, the world's largest shipping companies are avoiding the Red Sea and Suez Canal. This avoidance is expected to cause shipping delays, which will subsequently impact container ports across Europe.
South America-
Methyl Methacrylate prices in the South American market experienced fluctuations during the fourth quarter of 2023. Initially, in the beginning of Q4, prices in the Brazilian market declined due to abundant material availability domestically and through imports. The influence of lower Acetone prices, a key feedstock, had a limited impact on Methyl Methacrylate prices during this period. Market reports indicated a moderate demand for Methyl Methacrylate from the domestic Polymethyl Methacrylate industry, with transactions primarily based on immediate needs. Steady imports from the US contributed to a supply-dominated market, supporting the prevailing price trend of Methyl Methacrylate in the domestic market.
Towards the end of Q4 2023, Methyl Methacrylate prices saw an upward trend in the domestic market. This shift was attributed to an increase in feedstock Acetone prices, leading to higher production costs for Methyl Methacrylate. Consequently, manufacturers made slight adjustments to their prices. Despite tepid demand from the downstream Polymethyl Methacrylate industry, driven by a slowdown in the automotive and construction sectors, the market did not witness a significant decrease in Methyl Methacrylate prices due to these factors.
Moreover, imports from the US dwindled towards the end of Q4, as the supply was affected by low water levels in the Panama Canal, impacting the availability of Methyl Methacrylate in the Brazilian market. Overall, limited material availability in Brazilian ports or the market is anticipated to persist until the year-end. Festive holidays are expected to further dampen production rates and constrain market volumes.
