MMA Market Update, October 2020
Since summer this year, the MMA market sees a shift in global dynamics with MMA prices firming after the price normalization that had been ongoing since early 2019. Major reasons for the shift have been the increase in feedstock prices, especially on the acetone side, limited MMA production output with high number of turnarounds and noticeable recovery of MMA demand after Covid-19 lockdown in all major regions.
MMA market recovery continued globally in the last weeks supported by several MMA maintenance shutdowns across the major regions and demand picking up. Asia’s MMA spot prices rose by nearly 10% over a five-week period (ICIS Oct 12, 2020) with markets tightening on the back of limited supply and strong downstream demand typically reaching a peak in manufacturing activities in September and October. China domestic market also returned firmer after the Golden Week holiday.
A closing arbitrage window limits exports from Asia to Europe and North America where the MMA market fundamentals have also become more robust. While in Europe the coatings sector performs healthily and Automotive is more strongly coming back than anticipated, also in North America Automotive and Construction segments continue to recover on the back of a healthy architectural coatings demand. Demand for PMMA protection shield remains healthy in both regions.
Sources: ICIS, Röhm market information