PMMA costs surge despite sluggish demand. The polymethyl methacrylate (PMMA) market saw rising methyl methacrylate (MMA) costs due to apparent disruptions in Saudi Arabia, leading to delays and a surge in MMA spot prices.
Despite the cost increase, extrusion PMMA prices have risen by triple-difits for some buyers in April. However, demand for PMMA has been slow to recover, particularly in the construction industry, where activity levels have decreased by up to 40%.
The ongoing competition from import means domestic suppliers will struggle to push up resin prices in line with costs.
The market faces ample supply, and weak Chinese performance and a strong Euro have made PMMA imports competitive in Europe.
The surge in costs has changed the outlook for the next few months, with extrusion prices likely to follow cost developments more closely. The ongoing and increasing uncertainty in the market means visibility remains low.
The lack of a clear tend will ensure buyers remain defensive, keeping stocks low and buying hand-to-mouth. Moreover, the high interest reates and strained balance sheets provide an additional incentive to keep inventories low.