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MARKET OVERVIEW
In June, overall demand
for MMA across Asia remains sluggish, with prices continuing to trend downward.
The persistent softness is primarily attributed to low operating rates at downstream
factories and reduced procurement activities, as buyers respond cautiously to
an unstable macroeconomic environment and elevated inventory levels. Political
uncertainties further cloud the market sentiment. On May 25, Russia launched
its largest airstrike against Ukraine since the onset of the war, deploying 298
drones and 69 missiles overnight across several cities, including
Kyiv—resulting in 13 fatalities and dozens injured. Simultaneously, tensions in
the Middle East intensified. On May 23, Iran’s Islamic Revolutionary Guard
Corps warned of a “devastating blow” should Israel initiate any provocation,
underlining Tehran's hardened posture. Meanwhile, South Asia saw its own
escalation when India launched “Operation Sindhu” from May 6–10, triggering a
military conflict with Pakistan that required U.S. intervention to reach a
ceasefire. Regional stability remains fragile, further dampening market
confidence. According to trade and tariff disruptions, the evolving U.S.–China
trade dynamic has added to the complexity. On May 12, U.S. Treasury Secretary
Jeff Bessant and Chinese Vice Premier He Lifeng issued a “Joint Statement of
the China–U.S. Geneva Economic and Trade Talks,” initiating a 90-day
negotiation period during which both nations agreed to significantly reduce
tariffs. The U.S. cut tariffs on Chinese goods from 145% to 30%—including those
on fentanyl-related products—while China lowered its tariffs on U.S. goods from
125% to 10%. Additionally, the U.S. revised its controversial "de
minimis" policy, reducing small-package tariffs from 120% to 54%. Despite
this temporary relief, volatility persists U.S. President Trump threatened to
impose a 50% tariff on EU imports starting June 1, although following a call
from European Commission President Ursula von der Leyen, the implementation has
been postponed to July 9. These abrupt tariff changes have contributed to an
atmosphere of uncertainty, dampening buyer confidence and increasing fears of a
global economic slowdown. Impact on retail and downstream sector: in the U.S.,
the retail sector is already feeling the effects of trade policy shifts. On May
17, Walmart CFO John David Rainey told CNBC that the company in under
substantial cost pressures, particularly due to the tariffs on Chinese imports.
Walmart, with over 4,600 U.S. stores in the U.S., sourcing network spans
countries like Canada, China, India, Mexico, and Vietnam—many of which face import
duties of 10% ~ 25%. Walmart has indicated that significant price increases are
expected beginning in June. However, President Trump pushed back on the
narrative via Twitter, urging Walmart to absorb the costs rather than pass them
onto consumers, creating further business uncertainty. The MMA market is also
suffering from internal industry challenges. Producer confidence has been
shaken amid sluggish offtake and a growing supply overhang. Inventory levels
continue to rise, placing added pressure on sellers. With current fundamentals
showing no clear sign of recovery, market sentiment remains subdued. Looking
ahead to July, MMA prices are expected to remain weak. A recovery in demand –
rather than further supply adjustments – is viewed as essential to stabilize
the market. Until then, the outlook remains cautious, and sellers are likely to
adopt a conservative approach in pricing and production planning.
FEEDSTOCK
Erratic US tariff moves
have intensified concerns over a global economic slowdown, particularly amid
the ongoing tit-for-tat tariff escalations between the US and China. The heightened
trade tensions between the world’s two largest oil consumers continue to cast a
shadow over the global market. Meanwhile, expectations of a potential OPEC+
output hike in July – amid reports of planned Israel strikes on Iranian nuclear
facilities – have further pressured crude oil prices. According to EIA data, crude oil inventories in the U.S. recorder an
unexpected build, while gasoline and distillate stocks saw drawdowns. Despite this,
major investment banks have recently moderated their recession forecasts. As of
May 28, crude oil prices trended downward, with WTI at US$60.89/bbl and Brent
at US$64.09/bbl, both fluctuating within a US$60–65/bbl range. Upstream, Asian
naphtha prices remain stable at US$560-600 pmt CFR NE Asia, amid reduced operating
rate by several producers due to poor market conditions. Meanwhile, with spot
ethylene prices were steady at US$780-840 pmt CFR Asia. However, propylene
prices saw a slight decline to US$790-830 pmt CFR Taiwan, reflecting ongoing
oversupply and weakened demand exacerbated by U.S. tariffs pressures. Acetone
prices continued it downtrend, falling to US$640~690 pmt CFR SE Asia, as oversupply
and weak demand persisted. MTBE prices also softened to US$660~700 pmt CFR Asia,
driven by declining feedstock costs and subdued demand. Methanol prices remained
stable at US$330~350 pmt CFR Taiwan. Although recent decline in acetone and
MTBE prices have improved production margins for MMA producers, the benefits
are tempered by lackluster downstream demand. The weak market environment is
likely to constrain any meaningful production increases in the near term.
PRODUCTION AND MARKET
Europe: the MMA market remains
under pressure amid persistently weak demand, ample regional supply, and the
continued influx of competitively priced imports. Contracted volumes are
currently sufficient to meet most buyers’ requirements, resulting in subdued
spot market activity. As the region approaches the summer holiday period,
market sentiment remains bearish, with limited signs of near-term recovery. MMA
prices have continued to soften, driven by the underwhelming-but-steady demand
and a decline in key feedstock propylene costs. These lower feedstock costs are
being partially through by producers, further weighing on market prices. In
contrast, Asian MMA prices are showing signs of upward movement. The shift is
being fueled by a weaker local currency making imports more expensive, rising
freight costs, and a narrowing arbitrage window – all of which are contributing
to firmer sentiment in the Asian market. According to Oxford Economics, EU
construction output – including the UK – is forecast to grow by a modest 0.6%
in 2025. While the European Central Bank (ECB) is expected to implement
interest rate cuts that could eventually stimulate the broader economy, these
policy measures are likely to have delayed effects. GDP growth for the EU is
projected at 1.8% in 2025, reflecting ongoing challenges such as global trade
tensions, weak industrial performance, and a lag in economic stimulus
transmission. Despite the prospect of monetary easing, growth in the
construction sector is expected to remain moderate in the short term, limiting
any meaningful upswing in MMA demand from this key end-use industry. On the
supply side, Röhm GmbH has scheduled maintenance for its 95 kpta MMA plant in Wesseling,
Germany. The shutdown began on May 10 and is expected to continue until June 7.
United States: the MMA market demand remains
subdued amid ample regional supply and seasonal demand lulls in downstream
consumption. However, the market demand could see modest improvement following
the recent de-escalation in U.S. - China trade tensions. The two countries agreed
to suspend additional tariff increases for 90 days, a move expected to ease
pressure on global trade flows and restore some buyer confidence. Macroeconomic
pressure indicators continue to signal caution. Homebuilder confidence declined
sharply in May, reflecting growing concerns over the economic outlook.
Meanwhile, the automotive sector remains under pressure due to lingering
tariffs on parts and metals, contributing to a more challenging operating environment.
According to Oxford Economics, global automotive production is projected to
contract by 2.5% year-on-year in 2025, further dampening demand for MMA used in
automotive coatings and plastics. The evolving tariff landscape is forcing OEMs
and manufacturers to reassess sourcing strategies, operational footprints, and
overall business models. Although recent trade negotiations offer a temporary
reprieve, the situation remains fluid and sensitive to policy shifts. On the
supply side, notable developments are unfolding in the U.S. market. Röhm GmbH
and OQ Chemicals have progressed with the construction of a new 250kpta MMA
plant in Bay City, Texas, utilizing Röhm’s proprietary LiMA (Leading in
Methacrylates) technology. The facility began ramp-up operations in May, gradually
introducing incremental supply to the market. Concurrently, it’s understood
that OQ Chemicals has reverted to its former name, Oxea, following its
acquisition by Strategic Value Partners and Blantyre Capital Management. Additionally,
reported that Röhm had resumed production at its existing MMA unit in Bay City as
of mid-May. However, the company is expected to phase out acetone-based MMA
production at its Fortier facility by the end of June, which may partially
offset the increase in supply from the new LiMA unit. While current
fundamentals remain bearish, particularly on the demand side, the combination
of potential trade relief and upcoming supply transitions may shift market
dynamics in the second half of the year. For now, buyers continue to take a
wait-and-see approach amid lingering uncertainty.
Asia: following steep declines
in MMA prices in recent months, market demand in Asia has begun to show signs
of stabilizing. Some cast sheet manufacturers have taken advantage of the lower
price environment to replenish inventories, while the U.S. government’s
announcement of a 90-day tariff suspension has prompted a surge in rush export
orders. As a result, MMA offtake improved between May and June. However, many buyers
– particularly those maintaining lean inventory levels - have remained focused
on fulfilling existing contractual obligations rather than engaging in spot
purchases. The cautious procurement strategy reflects a broader reluctance to stockpile,
contributing to a subdued market sentiment and complicating pricing strategies for
both buyers and sellers. On the supply side, MMA availability across Asia
remains relatively balanced, with current operating rates estimated at 50–60%. In
a significant industry update, Asahi KASEI announced on May 27 its scheduled
exit from several methacrylate-related businesses: the cessation of Methyl methacrylate
(MMA) manufacture and sales in September 2026, Cyclohexyl methacrylate (CHMA) in
March 2026, and Polymethyl methacrylate (PMMA) resin production in September 2026,
with final sales to conclude in September 2027. The company cited changes in
market structure and competitiveness as factors behind the decision. Meanwhile,
the Asia Petrochemical Industry Conference (APIC), held from May 15–16 in
Bangkok as scheduled, emphasized the urgent need for the industry to adapt to long-term
structural shifts amid persistent weak demand and ongoing global economic
uncertainties.
CHINA DOMESTIC MARKET OVERVIEW
Following the Labor Day
holiday on May 1, the domestic MMA market has shown no signs of meaningful
recovery. The market continues to face a weak supply-demand balance, as buyers
remain cautious and closely monitor feedstock cost fluctuations. Oversupply remains
a key issue – further exacerbated by Sinochem Quanzhou’s commissioning of a new
100kpta methyl methacrylate (MMA) unit in May. China’s yuan-denominated MMA
prices have experienced a steady decline, reducing the viability of exports. As
a result, FOB China offers have been positive, with indicating prices around
US$1,300/mt. According to ICIS, domestic ex-work MMA prices fell slightly to CNY
10,200–10,800/mt by end- May.
Market Supply Updates:
- Qixiang Tengda – One unit at the
200 kpta MMA plant in Shandong has been shut down, due to cost issues. Another
unit has scheduled shut down in May 6 and restarted end May.
- Shenghong Group (Jiangsu Sierbang
Petrochemical) – one unit remains to shut down at its 340 kpta MMA plant
in Lianyungang.
- Wanhua Chemical – One unit at its
110 kpta MMA plant in Yantai is shut down on May 8.
- Dongying Yingke Chemical and
Shandong Yuetian– The 50 kpta and 20kpta MMA plant in Shandong are
scheduled for shutdown.
- Jiangsu Jiankun – The 150 kpta MMA
plant in Jiangsu was shut down on May 8.
- Liaonging Kingfa – The 100kpta
MMA plant in Liaonging was shut down on May 9.
- PetroChina Jilin – The 50kpta MMA
plant in Jievang, Guangdong, was shut down on May 9.
- Shanghai Röhm – The 100 kpta MMA
plant planned to shut down for maintenance in May.
A number of producers
have either reduced output or undertaken maintenance in response to cost
pressures and poor margins. According to Chemical Market Analytics, the
national average MMA plant operating rate is currently estimated at 52–60%. Despite
multiple shutdowns across China, new capacity additions and limited export
activity continue to weigh heavily on domestic pricing. A sustained rebound
will likely require stronger downstream demand, feedstock cost stabilization,
and potential export market recovery.
DOWNSTREAM
On the PMMA front, the PMMA demand remains
weak, due to the sluggish performance of the automotive sector and ongoing
uncertainty surrounding the US-led tariff conflict. In China, MMA prices have
been on a sustained downward trend for several weeks, reflecting persistent
bearish sentiment in the market. This decline is compounded by the escalating trade
tensions between the U.S. and China, which continue to weigh on buyer
confidence. Domestically, China’s demand for PMMA has remained subdued due to
unattractive production economics. A wide gap between buyer and seller price
expectations has resulted in a market stalemate, with buyers delaying purchases
in anticipation of further price declines. Market participants believe raw
material of MMA price in yuan terms have ye to bottom out, especially as plant
restarts toward the end of May are contributing to increased supply and further
hesitation in the market. As of late May, upstream PMMA feedstock of MMA prices
are reported at CNY 10,500-11,000/mt (DEL). In parallel, PMMA prices have
continued to decline, with locally sourced material trading between CNY14,000-15,000/mt
EXWH. PMMA from non-Chinese producers is quoted at CNY 16,000–17,000/mt EXWH.
In Southeast Asia, the downtrend persists, with general-purpose (GP) PMMA spot prices
ranging from US$1,850-2,150/mt CFR SE Asia. In a more positive development, Röhm
announced on May 6 the debut of PLEXIGLAS® on the Opel Grandland Electric - the
first production vehicle to feature an illuminated logo using this material. Automotive
supplier HELLA Lighting has incorporated 3D-effect letters made from Röhm’s PLEXIGLAS®
molding compound into the rear assembly. This innovation demonstrates the high
optical quality and excellent formability for Röhm’s PMMA, reinforcing its
suitability for illuminated automotive branding and emblem applications.
On the acrylic sheet side, market demand remains stable to soft heading into the rainy
season. In Indonesia, demand appears steady, though reports indicate that at
least one buyer has requested to postpone MMA shipment due to slowdown in
market activity. Compounding this issue, limited vessel availability and
constrained supply have pushed up ocean freight rates since June, creating
logistical bottlenecks. These challenges could reduce export order volumes and
further dampen MMA offtake prospects for Q3. In Vietnam, while export orders
have seen some improvement, production has been limited by an ongoing labor
shortage. Since April, cast sheet manufacturers have been operating at only 60~70%
of capacity. As a result, most buyers have focused on fulfilling contractual
volumes through May and June rather than taking on additional spot volumes. In
Taiwan, domestic MMA demand remains weak. Cast sheet producers have responded
by scaling back production rates in line with subdued end-user consumption. In
Thailand, supply tightness has emerged in the wake of a major MMA producer’s
shutdown in May. This has led to limited spot availability in the local market.
Cast sheet prices across the region are currently ranging from US$2.15~2.40/kg
CFR, reflecting a balanced but cautious market outlook as participants navigate
ongoing supply chain and demand-side pressures.
On the resin side and related markets, demand from the acrylonitrile-butadiene-styrene (ABS)
sector has remained subdued, prompting some producers to reduce operating rates
to below 60%. Market demand has been influenced by fluctuating tariff policies,
initially weakening before showing partial recovery. The recovery was mainly
concentrated on downstream products with simpler production processes - such as
daily necessities, toys, etc. – largely consisting of delayed export orders
that were previously suspended. However, core end-use sectors like home appliances
and consumer electronics continue to face bearish conditions. Buyers are
adopting just-in-time procurement strategies to minimize inventory risk,
further curbing ABS demand. In the acrylamide sector, demand has held steady, although
producers have scaled back operations to better manage inventory and prevent oversupply.
Similarly, the nitrile butadiene rubber (NBR) market continues to show limited
support, with prices staying range-bound in a narrow window amid limited market
support. In India, MMA import demand continues to lag. Market participants
report that sellers are pushing back against offers below US$1,300/mt CFR India
- a price point now considered below most producers’ breakeven levels, reflecting
ongoing market hesitancy and persistent pricing pressures in the region.
MMA PRICES
|
US$/mt
|
|
June 2025 Price Range
|
May 2025 Price Range
|
|
Asia contract prices
for cargos ≦ 200mt or more
|
|
1,400~1,470
|
1,440~1,510
|
|
Asia spot prices for
20~200mt
|
|
1,450~1,550
|
1,500~1,600
|
