GMAA Market Update, December 2020
While the Methacrylic Acid (GMAA) market has seen a price normalization throughout 2019 and a dip after the Covid-19 breakout, the market has lately turned tight in all major regions. With prices surging in Asia and continuously firming in Europe and NAFTA. Major reasons include a healthy demand development in critical end user applications such as coatings, construction and healthcare. For instance, medical and protective glove applications are characterized by strong long-term growth rates which have been further boosted due to Covid-19 pandemic. Overall, Asia is a strong growth driver for GMAA based on a solid recovery of many applications after the strong impact of Covid-19 lockdown in several countries in Q2. In addition, hydroxyester downstream is significantly pulling material due to a globally strengthening coatings sector.
On the supply side, several production issues limit availability, esp. in Asia. Besides, Mitsubishi Chemical’s announcement to close its GMAA plant in Beaumont in February 2021 is expected to impact global supply & demand dynamics. Also, raw material prices are on the rise. The acetone market, for instance, has been tightening due to high demand in several downstream outlets and some supply limitations.
The worldwide pandemic poses a big challenge on shipping and logistics. Start of winter season in Europe and North America enhances logistical challenges for exports due to GMAA’s special requirements for shipping and storage at a specified temperature range. Also, uncertainties regarding the impact of a hard Brexit are being discussed.
Sources: Röhm market information