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MARKET OVERVIEW

In April, the Asia MMA market is continuing to face reduced demand, influenced by ample inventories, ongoing uncertainty surrounding U.S. trade policies, and logistic disruptions. Additionally, the upcoming national holidays - Muslim Ramadan and Songkran Water Festival - across Indonesia, Thailand and Malaysia, will result in many cast sheet factories curtailing operations for one to two weeks. As a result, most buyers are maintaining reduced stock levels and refraining from immediate procurement or committing to the minimum MMA offtake quantities, primarily owing to uncertainty from shifting U.S. Tariff policies. MMA producers, in turn, are attempting to tie sales to the minimum offtake volumes stipulated in 2025 contracts, as overall trade activity remains subdued. Market participants continue to struggle to reach a consensus, with export opportunities becoming increasingly unviable under the current conditions. Furthermore, according to data from the Chicago Mercantile Exchange Group (CME Group), financial markets reacted to the Federal Reserve’s (Fed) decision on March 19 to maintain its policy interest rate at 4.25% to 4.50% for the second consecutive meeting. The Feb has paused rate cuts amid persistent inflation and market speculation that former Trump's tariff strategy could lead to an economic slowdown. Despite this, Trump has continued to pressure the Fed to cut rates.

U.S. Tariff Policy Shifts: after U.S. President Donald Trump signed an executive order in February imposing a 10% tariff on goods imported from China, the U.S. implemented a further 25% tariff on all imported steel and aluminum in March. In response, the European Union announced retaliatory tariffs on US$28 billion (approximately NT$923.4 billion) worth of American goods, including yachts, whiskey, motorcycles, agricultural products, furniture, and other consumer products -with whiskey facing tariffs as high as 50%. In retaliation, President Trump issued a warning on the March 13, stating that if the EU does not cancel its tariff, the U.S. will impose a 200% tariff on European alcoholic products such as wine and champagne. Additionally, U.S. President Trump is expected to announce reciprocal tariff measures on April 2, with a particular focus on imposing high tariffs on U.S. goods. The administration is also set to release a list of the "Dirty 15"- countries that may face new tariff actions based on commodity import and export data. The top-ranked countries by U.S. trade deficit are: China, European Union, Mexico, Vietnam, Ireland, Germany, Taiwan, Japan, South Korea, Canada, India, Thailand, Italy, Switzerland and Malaysia. These measures are expected to have significant implications for global trade dynamics, particularly n sectors heavily reliant on U.S. imports and exports.

Logistics perspective update: as demand in the European market continues to decline, shipping companies have adjusted their capacity deployment. For instance, Mediterranean Shipping Company (MSC) has decided to reallocate all large ships (19,000-24,300 TEU) currently operating between Asia and Northern Europe to the Asia-Mediterranean and Asia-West Africa routes. While the long-term impact of this capacity shift remains uncertain, other logistics challenges are simultaneously emerging. At the same time, the ongoing drought in Eastern and Southern Europe has caused low water levels in Germany’s Rhine River, disrupting barge transportation. As a result, carriers have announced low-water surcharges on import and export cargo. Additionally, widespread industrial actions across major European ports are contributing to congestion, delays, and increased logistics costs. The situation is as follows:

Meanwhile, freight rates on the Trans-Pacific Eastbound route have declined following weak post–Spring Festival demand. However, many carriers are now considering a general rate increase (GRI) of US$1,500 per FEU in late March. Compounding the uncertainty, the U.S. has announced an increase in tariffs on Chinese imports - raising the previous 10% rate to 20% starting in March 4. This escalation is expected to further disrupt the balance of shipping capacity supply and demand. These factors contribute to a conservative and soft outlook for MMA prices in May, with minimal upward momentum anticipated in the near term. This downturn is primarily attributed to ample supply and subdued trade activity as buyers continue to scale back purchases.

FEEDSTOCK

On the feedstock side, ccrude oil prices have shown volatility, initially driven by heightened geopolitical tensions - including U.S. airstrikes against Houthi rebels in Yemen, renewed Israel - Hamas hostilities, and U.S. sanctions targeting Iran's shadow tanker fleet and a Chinese refiner. Additionally, OPEC+ plans for overproducing members to make compensatory output cuts are supportive. Crude by March 28, international oil prices had slightly increased to the range of US$69-75 per barrel, with ICE Brent at US$74.03/bbl and WTI at US$69.92/bbl. Moreover, the prospect of eased U.S.-Russia tensions and potential peace talks in the Russia-Ukraine war, while China’s plans to boost domestic consumption in efforts to meet a 5% growth target to positive the crude oil prices in the coming. The upstream naphtha prices have hovered between US$620~650 pmt in Northeast Asia. Demand for propylene remains below historical averages, with spot values stable at US$820-850 pmt CFR in Asia, driven by uncertainly market demand and weak downstream demand. The spot ethylene prices showed a drop to US$850-890 pmt CFR in Asia. The methanol prices have slightly increased to US$350~370 pmt CFR in Taiwan, reflecting tight supply-demand dynamics. The acetone remains steady, with buyers facing narrowed margins and bearish domestic commodity market sentiment. Considering the softened buying attitudes, acetone prices remain stable at US$690~750 pmt CFR in SE China. MTBE prices continue to decline, reaching US$690~720 pmt CFR in Asia, amid unimproved market fundamentals. Due to a significant drop in raw material costs and declining demand in the MMA sector, producers are reducing prices to secure orders amid bearish market conditions. However, both producers and buyers are expected to proceed cautiously as the low production rate in Q2 approaches, with market activity shaped by global economic and geopolitical developments. Weak demand in downstream applications, combined with U.S. Tariff Policy Shifts, continues to exert pressure on MMA pricing.

PRODUCTION AND MARKET

Europe: the MMA market remains sluggish, with MMA prices sharply declining between March and April as sellers look to clear inventories. This downturn is driven by low automotive production and ongoing uncertainty among end consumers. Buyers continue to destocked, with demand mostly covered by contract volumes, limiting spot market activity. Some producers expect a slight demand uptick ahead of the coatings season, leading most to announce price rollovers. However, final agreements depend on MMA purchase volumes during negotiations. The updates of production that Röhm GmbH MMA plants in Wesseling and Worms, Germany: shutdown from May 10 to June 7 and October 24 to November 24, respectively.

United States: MMA spot prices have declined due to sluggish supply-demand fundamentals. Although the raw material acetone prices remain under pressure due to lower weighted-average refinery grade propylene (RGP) costs, MMA supply has tightened as Dow’s 425kpta MMA plant in Deer Park undergoes turnaround planning. This has led to sales control declarations for U.S. Glacial Methacrylic acid (MAA) and MMA. However, demand has not picked up ahead of the coating season, with Q2 expectation remaining pessimistic, driven by high interest rates, and tariff uncertainty continues to impact the housing, construction, and automobile sections, further dampening demand. On March 24, Röhm successfully started production at its new 250kpta Bay City (Texas, USA) MMA plant, utilizing its proprietary C2-based LiMA technology on a large industrial scale. This is Röhm’s first C2-based 250kpta MMA plant using proprietary LiMA technology, which has a higher yield process that significantly reduces CO2 emissions and enhances supply security for Röhm’s customers. This project highlights Röhm’s commitment to innovation, sustainability and continued investment in the business. Furthermore, the Petrochemical Manufacturers (AFPM) International Petrochemical Conference took place in San Antonio, Texas, gathering a large majority of acrylonitrile market players with vested interests in the Americas. Key discussions focused on strategies for moving forward following the closure of Cornerstone Chemical’s 240,000 metric tons capacity by end-June 2025, as well as the impact of impending tariffs on the industry.

Asia: we are deeply saddened by the 7.7-magnitude earthquake that struck Myanmar’s northwestern Sagaing region on March 28, with strong tremors felt in Thailand, Vietnam and China. According to the latest statistics released by the News and Information Group of the Myanmar State Administration Council, on March 30, the earthquake has caused 1,700 fatalities, 3,408 injured, and approximately 300 people were missing. In Thailand, a building under construction collapsed in Chatuchak. Bangkok. Officials have revised the earthquake related death toll in Thailand to 18 dead, 33 injured and 78 missing. MMA operating rates remain exceptionally low, with several MMA producers either scheduling shutdowns or cutting production owing to weak global demand. US President Donald Trump announced 25% tariffs on imported cars and light trucks, with automobile parts tariffs set to take effect in May, impacting South Korea and Japan’s automotive industry. In Indonesia and Malaysia, the demand is expected to slow down due to the upcoming Muslim Ramadan holiday (March 27 ~ April 11), during which most factories will shut down. In Thailand, domestic demand is declining to stable ahead of Songkran Water Festival (April 13~15), and all cast sheet factories will curtail production for one week during the holiday. Additionally, no structural damage to MMA plants has been reported due to the earthquake. In Taiwan, most cast sheets are limiting negotiation due to poor market demand and low spot appetite. Despite ongoing challenges, the overall MMA operating rate is currently hovering at 70~80% approximately.

CHINA MARKET OVERVIEW

The domestic MMA market remains under significant pressure, with bearish sentiment affecting both sellers and buyers. Market activity is limited, and yuan-denominated spot prices have fluctuated but ultimately stabilized at weaker levels. During the annual ‘Two Sessions’ in early March, the Chinese government set its 2025 GDP growth target at 5%, mirroring last year’s goal. However, market sentiment is clouded by the newly imposed 10% U.S. tariff on Chinese imports, raising uncertainties for trade and industrial output. To stimulate domestic consumption, the Chinese government has allocated RMB 81 billion (approximately $11 billion) in 2025 for consumer goods trade-ins, aiming to boost the weak household sector and drive economic momentum. In the MMA market, prices have continued to decline, ranging between Chinese yuan (CNY) 10,800/mt ~ 11,300/mt EXWH, as the market anticipates the commissioning of new capacities. Buyers have mostly secured adequate inventory, reflecting weak domestic demand. Additionally, U.S. dollar appreciation has made imports costlier for Asian currency holders, further dampening sentiment. Meanwhile, in a politically sensitive move, Cheung Kong Hutchison Holdings, owned by Hong Kong billionaire Li Ka-shing, has suspended the sale of 43 global ports in 23 countries to U.S. investment giant BlackRock Group, following pressure from Chinese authorities. The decision is said to align with China's Anti-Monopoly Law and its strategic to protecting the Belt and Road Initiative amid intensifying Sino-US geopolitical tensions. Reports indicate that the overall MMA operating rate has increased to 65-75%, with upstream acrylonitrile (AN) production rising between February and March. The following notable updates on the market supply situation:

1.       Oxixiang Tengda's 200 kpta MMA plant in Shandong has shut down its No. 1 MMA unit for maintenance and is reducing production at its No. 2 unit.

2.       Wanhua Chemical’s 110kpta MMA plant, in Yantai, is scheduled to shut down one unit.

3.       Shenghong Group, Jiangsu Sierbang Petrochemical Co., Ltd, 340kpta MMA plant in Lianyungang has shut down one unit.

4.       Shanghai Lucite International 180kpta MMA plant plans to shut down in a few days.

The combination of poor domestic demand, geopolitical tensions, and the possibility of escalated U.S.-China trade uncertainties will likely limit price increases and further pressure operating rates in the MMA market. Both buyers and sellers are expected to adopt cautious strategies in navigating these challenging market conditions.

DOWNSTREAM

On the PMMA side, as MMA prices fell rapidly, many buyers adopted a wait-and- see approach and only resumed purchasing after prices showed signs of stabilizing. Both domestic and export demand remain disappointing, with no significant improvement in PMMA consumption. In China, poor sales performance has led several producers to cut output, while an unfavorable CNY/USD exchange rate continues to dampen import confidence. The light - emitting diode (LED) television and general purpose (GP) grade sector demand remains bearish, as buyers maintain sufficient stock and exhibit minimal purchasing activity. Locally sourced material prices have continued to decline, ranging from CNY 16,200/mt to CNY 16,800/mt EXWH. For the material from producers outside China have also decreased, now ranging from CNY 17,300/mt to CNY 18,200/mt EXWH. Meanwhile, Southeast Asia GP spot prices have declined further to US$1,950–2,200/mt CFR SE Asia

On the acrylic sheet side, cast sheet manufacturers continue to reduce production, leading to a sharp drop in MMA consumption owing to high inventory levels and stagnant market demand. In Vietnam, cast sheet factories are actively cutting MMA inventory in April, affected by ongoing economic challenges, and excess stock has further weakened market sentiment. These producers believe MMA price reports may not fully reflect actual market conditions, as prices could be lower than reported. In Thailand, domestic market demand is declining, impacted by the late March earthquake and the Songkran Water Festival holiday in April. Cast sheet factories plan to curtail output for one week during the major holiday. In Indonesia, while the domestic market demand remains stable, export orders are decreasing amid a sluggish macroeconomic conditions and ample cast sheet inventories. Cast sheet producers plan to shut down production for 1~2 weeks during Muslim Ramadan.

On the acrylic sheet side, the cast sheet prices ranged at US$2.30~2.60/kg CFR.

On the resin side and others, in Q2, many resin manufacturers have adopted a cautious "wait-and- see" strategy, limiting market activity amid low operating rates and an effort to reduce inventory levels in anticipation of U.S. Tariff Policy confirmation. ABS (Acrylonitrile Butadiene Styrene) demand across major consuming sectors (home appliances, consumer electronics) has slightly declined, while several producers shut down for maintenance, leading to a drop in overall operating rates. Despite the reduction in supply, ABS prices continue to trend downward due to high inventory levels and sluggish demand recovery.  Demand from acrylamide sector held steady, but prices declined in the first half of the month before stabilizing, mirroring the acrylonitrile market. The overall demand from NBR sector held firm, while prices softened marginally due to lower feedstock costs. The market remains relatively stable. In India, the bearish sentiment, reflecting the broader global economic slowdown. December shipment bulk prices for 1,000mt were reportedly below US$1,400/mt CIF India, signaling softening demand and price pressures in the region.

MMA PRICES

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