MMA Market Update, November 2020
Since the summer of this year, the MMA market has seen a shift in global dynamics. MMA prices are now firming after price normalization in early 2019 and impacts of the Corona lockdown in several countries in Q2.
Lately, the market has turned tight in all major regions with prices surging in Asia and further firming in Europe and NAFTA. Major reasons include a healthy demand development in critical end user applications such as PMMA and coatings performing stronger than anticipated for this time of the year. The supply side is characterized by maintenance shutdowns and several supply issues in Asia and US, as reported by several market sources. Also, raw material prices are on the rise. In particular, disruptions in the global phenol-acetone chain plague the overall Acetone availability and lead to price surges. It is heard that physical product availability remains an ongoing challenge as the supply chain is stretched to its limits.
The worldwide pandemic poses a big challenge on shipping and logistics. Also, uncertainties regarding the impact of a hard Brexit are discussed.
Röhm is preparing for a strong start of the methacrylates business in 2021 and will use its integrated production and supply chain network to ensure high level of service and reliability for its customers.
Sources: ICIS, Röhm market information