Home Latest PMMA

PMMA

PMMA PRICES BECOME STABLE IN MAY
market stability

PMMA prices become stable in May in Europe because of a more balanced market. Producers appear to have succeeded in balancing the market by lowering operating rates in line with the lower demand.

This is preventing prices from retreating on the back of oversupply.

PMMA demand decreased in the past few weeks because of the recent surge in prices. Supply chain problems downstream also redued activity and lowered demand. What is more, inflationary pressures appear to also be weakening demand.

To prevent oversupply and negative margins, producers have apparently reduced operating rates to around 70 percent.

Nevertheless, this stability means that prices remain firm after the substantial increases in April.

The current price level of polymethyl methacrylate (PMMA) injection moulding grade is around €3,000/mt for many buyers.

Europe is suffering from the recent spikes in energy prices. This prompted one producer to extent its maintenance turnaround and supply customers with lower cost PMMA from other regions.

The current stability will probably continue during the summer, if gas prices remain around current levels, namely just below €100/MWh.

A few buyers apparently received competitive offers for Asian volumes, around €200/mt lower than domestic prices.

These, however, seem exceptions as the rise in logistic costs meant prices of imports are now the same as domestic prices, even higher for many buyers.

As the war continues amid increasing inflationary pressures, the second half of the year is shaping up to be a very challenging period for all market participants.

TRINSEO SIGNALS €550/MT INCREASES ON PMMA SHEETS

Trinseo signals €550/mt increases on polymethyl methacrylate (PMMA) sheets with immediate effect.

This follows a similar increase announced by the company earlier this week on PMMA resins.

Similar to all polymer markets, the PMMA value chain is battling with the turmoil in the energy markets.

The latest surge in both gas and oil prices have increased prices of many cost componets, such as transport, utilities, and raw materials.

Producers of acrylic sheets increased prices in the first quarter. And are now under pressure to secure even bigger increases in the second quarter.

PMMA PRICES WILL LIKELY SURGE IN Q2
Rear Car Lights

PMMA prices will likely surge in Q2 after the war in the Ukraine placed considerable pressure on costs.

While the market remains relatively balanced with ongoing and renewed weakness in demand, the cost pressure is mounting.

The war caused enourmous volatility in the energy markets, increasing the prices of many costs compontes.

Transport costs have increased because of the shortage of truck drivers and rising fuel costs.

Producers are facing high bills for electricity costs because of the higher gas prices.

And gas has also impacted production and prices of ammonia, a key raw material in the value chain.

In the past few days, the main raw material, methyl methacrylate (MMA), saw spot prices increase from €2,500/mt in February to €3,200/mt.

The big pressure on costs will mean that polymethyl methacrylate (PMMA) buyers will stuggle to avoid big increases in the next few months.

PMMA IMPORTS REMAIN HIGH IN EU

PMMA imports remain high in EU in 2021 and similar to 2020, with just over 10,000 metric tons, 33% more than in 2019.

In 2020, a surge in polymethyl methacrylate (PMMA) demand for protective sheets absorbed the extra volumes.

However, since then, demand for sheets has weakened. This means the increased imports are now ensuring that the market is well supplied.

PMMA Trade

Moreover, as Asian players do not have the pressure of high energy costs, their prices remain competitive despite the high freight rates.

As such, domestic producers are struggling to increase margins in line with costs. This situation will probably continue in the second quarter of 2022.

TRINSEO TARGETS €550/MT INCREASE ON MMA

Trinseo targets €550/mt increase on methyl methacrylate (MMA), effective from 1 March.

This announcement reflects the recent surge in both gas and oil prices.

Even before the war in Ukraine, MMA suppliers struggled with rising costs.

While the magnitude of the increase exceeds past proposals, it does not come as a surprise.

The dramatic surge of both gas and oil prices will most certainly mean buyers will experience hefty offers in the coming months.

Several other companies have also issued price increases from €250/mt to €450/mt, such as for compounds and engineering resins.

Newer Posts