PMMA

PMMA prices stable amid falling gas prices. Polymethyl methacrylate (PMMA) prices in March have generally remained stable. They also weakened slightly in some segments, according to GC Intelligence assessments.

Factors such as falling gas prices, strong competition from imports, and weak demand have contributed to these trends.

Price forecasts for the foreseeable future suggest a continuation of these trends, limiting prospects for a rebound this year.

Subdued demand is expected in key markets such as the sheet industry, automotive, and electrical and electronics sectors, with companies likely to face ongoing production slowdowns and restructuring.

ower gas prices have improved the outlook, but the ongoing war is expected to maintain high energy prices.

Demand has struggled to gain momentum in March, with persistent subdued activity in industries such as automotive, consumer goods, and construction.

he supply landscape remains consistent, with buyers experiencing minimal sourcing challenges due to subdued demand and competitive imports.

If the current weak situation persists or worsens, there is a risk suppliers will shut production.

Mitsubishi ponders plant closure of methyl methacrylate (MMA), with a final decision expected in January. The company started a period of consultation with employees to shut production at the Cassel Site, Billingham, UK.

The company noted it could stop all associated MMA manufacturing opeartions after undertaking a review. The review aimed to identify opportunities for long term economic sustainability.

The production technology at the UK site relies on gas, used both as feedstock and as energy.

The company had shut the plant in January for maintenance and has remained closed since then due to escalating gas prices.

The company said it undetook a review exploring options including mothballing of plants and reinvestment. However, the conclusion reached pointed that production at the UK Cassel Site “is not economically sustainable.”

The Cassel Site has a production capacity of 200,000 metric tons of MMA. MMA’s main application is the production of polymethyl methacrylate (PMMA). PMMA finds its uses in many sectors, including rear lights and road signs.

Roehm decreases MMA prices from the first of December “in order to support European customers”.

The decrease of €175/mt comes amid slowing demand and competitive imports across the value chain in Europe.

Methyl methacrylate (MMA) spot prices posted decreases in recent months, with imports offered below €2000/mt, according to the latest data from GC Intelligence.

The rise in energy prices in Europe pushed up prices and decreased competitiveness against imports.

The lower demand in Asia driven by the slowdown in China fuelled cheap imports, not only for raw materials but also for finished goods.

However, Roehm decreases MMA prices also likely helped by the recent retreat in gas prices.

The gas futures price peaked in the summer above €300/MWh and decreased around €100/MWh in October.

Nonetheless, gas prices found renewed support in November, climbing to €130/mt, and raising the risk of another spike during the peak demand period of the winter.

Methyl methacrylate (MMA) finds its uses in the paints and coatings industry, but mainly as a raw material for polymethyl methacrylate (PMMA).

Roehm, based in Germany, is a major producer of both MMA and PMMA.

PMMA prices suffered big decreases in November after worsening market conditions allowed buyers to negotiate corrections.

According to GC Intelligence market assessments, the decreases exceeded €100/mt on many accounts.

The bigger decreases were mainly for imported material.

Domestic producers continue to suffer under the weight of high energy costs and were for the most part unable to negotiate much lower numbers.

A major driver weakening prices is low demand due to high energy bills reducing consumption.

Moreover, buyers suffering low profitability are likely heavily destocking which deepens the slowdown in demand.

Another major reason why polymethyl methacrylate (PMMA) prices suffered big decreases is the intense competition from imports.

Suppliers from other regions are also battling low demand. But they can compete in Europe due to a better cost position.