MARKET OVERVIEW

Ongoing Geopolitical Stalemate and Sluggish Market Impact

The U.S.–Iran conflict has now continued for more than two months. Although the U.S. and Iran are currently under an indefinite truce, major issues such as highly enriched uranium related to nuclear activities, control of the Strait of Hormuz, and the Abraham Accords continue to prevent both sides from reaching common ground. The Strait of Hormuz, at its narrowest point measuring only about 39 kilometers (approximately 21 nautical miles), lies between Iran to the north and Oman to the south, connecting the Persian Gulf with the Indian Ocean. During peacetime, approximately one-fifth of the world's oil and liquefied natural gas passes through this strategic waterway. It is also a critical shipping route for bulk commodities such as aluminum and fertilizers. As a result, the Strait of Hormuz remains partially blocked, creating significant impacts on the global economy, including energy price shocks, inflationary pressures, political uncertainty, and disruptions to industrial and supply chain structures.

“The figure below shows a diagram of the Strait of Hormuz.”

Sharply Declining MMA Market Prices and Weak Demand Dynamics - Following a month of elevated Methyl Methacrylate (MMA) prices, market inquiries became increasingly scarce as buyers generally maintained sufficient inventory levels. Some market participants also indicated that contractual volumes were more readily available during April and May, reducing the need for spot procurement. Consequently, MMA prices declined sharply by approximately US$300-400/mt during May. In particular, domestic MMA prices in China continued to decline by nearly RMB 500-1,000/mt following the May 1 Labor Day Holiday, driven by weak downstream demand and persistent concerns over inflationary pressure and high interest rates. Encouraged by the recent price correction, along with growing resistance to the steep price levels seen in March and early April, buyers remained cautious and showed significantly weaker purchasing intentions. However, feedstock cost pressure remained elevated, continuing to squeeze producer margins amid ongoing supply constraints. MMA pricing has been heavily influenced by the sharp rise in key feedstocks, particularly propylene and ethylene, both of which have climbed above US$1,000/mt, while acetone and MTBE also remained at elevated price levels. As a result, the supply outlook remains constrained. Meanwhile, the US-Iran conflict has severely disrupted import flows into Europe, prompting European buyers to secure June and July MMA volumes from Asian producers to ensure supply availability ahead of the summer holiday season, which could stabilize to firm MMA prices between June and July. Sino- US Tariff Truce - Following US President Donald Trump's visit to China and the subsequent "Trump-Xi meeting," China's Ministry of Commerce announced preliminary outcomes from the Sino-US trade consultations, including a tariff truce, a framework involving $30 billion in tariff reductions, and guiding targets aimed at expanding bilateral agricultural trade. The Chinese government also indicated that it would ease export controls on key minerals, including rare earth materials, in accordance with applicable laws and regulations, while reviewing permit applications for compliant civilian-use exports. Price Outlook- The outlook for MMA prices and supply through July suggests a relatively balanced market, supported by a stable supply environment. However, elevated production costs and weak market demand continue to create opposing pressures, limiting market momentum and resulting in cautious sentiment among both buyers and sellers.

FEEDSTOCK

On the feedstock side, On the feedstock side, although geopolitical tensions had temporarily eased, crude oil prices remained highly volatile. Earlier price increases were largely driven by supply disruptions stemming from the Middle East conflict, particularly concerns surrounding the Strait of Hormuz blockade. While President Trump had previously de-escalated his rhetoric, both sides resumed attacks near the Strait of Hormuz on May 28 and accused each other of violating the ceasefire agreement. As a result, the market gradually began repricing the geopolitical “risk premium,” with deals concluded later in the month reflecting additional cost increases. In addition, expectations for potential U.S.-Iran negotiations increased, while shipping risks eased, prompting investors to take profits. At the same time, non-OPEC+ oil-producing countries, led by major U.S. shale oil producers such as ExxonMobil and Chevron, maintained high production levels. This weakened the impact of previous OPEC+ production cuts intended to support oil prices. According to estimates from financial institutions such as ING, global crude oil supply is expected to increase by 2.1 million barrels per day this year, significantly exceeding demand growth. In its latest report, the U.S. Energy Information Administration (EIA) sharply lowered its forecast for global oil demand growth, with some estimates revised down from 600,000 barrels per day to 200,000 barrels per day, signaling a severe slowdown in demand. Meanwhile, benchmark crude oil prices declined amid optimism surrounding potential U.S.-Iran peace talks. As of June 1, WTI crude was trading at around US$87.36 per barrel, while Brent crude stood near US$92.05 per barrel. Upstream, the naphtha market prices began to decline in line with falling crude oil prices, dropping sharply to around US$750–850/mt CFR NE Asia. In the olefins market, Asian spot ethylene prices also fell significantly to around US$1,000–1,100/mt CFR SE Asia, reflecting weak market demand. Against this backdrop, propylene supply remained tight due to ongoing refinery turnarounds and limited gasoil supply from the Middle East. Propylene spot prices stabilized at approximately US$1,250–1,300/mt CFR Taiwan. Meanwhile, MTBE prices fell sharply to around US$750–850/mt CFR Asia. Acetone prices stabilized at around US$900–1,000/mt CFR China. Methanol prices remained stable at around US$530–580/mt CFR Taiwan, as major suppliers continued to be affected by the partial blockage of the Strait of Hormuz. In the MMA market, feedstock costs remained elevated. However, MMA prices declined more sharply than feedstock costs, continuing to create challenging production economics. Weak downstream profitability further weighed on market sentiment.

PRODUCTION AND MARKET

Europe: MMA spot prices appear to be softening amid weak buying sentiment, cheaper imports, and sufficient contract volumes available in the market. Demand is expected to remain subdued heading into the summer season. However, high production costs and tight supply conditions resulting from the US-Iran conflict have continued to support increases in propylene, acetone and energy costs. According to reports, several major downstream polymethyl methacrylate (PMMA) producers are relying solely on contracted volumes and remain hesitant to purchase from the spot market. Some producers have also reduced operating rates in order to balance supply with contracted MMA availability. In Europe, governments have been recently shifted their focus away from "climate protection" toward "energy sovereignty" and "supply chain security." Decarbonization policies are now gaining political support mainly when they contribute to military defense, strengthen local supply chains, and reduce foreign dependence. As a result, the European Green Deal has increasingly become more of a political slogan than a practical priority. Meanwhile, after recently experiencing an "Arctic cold wave," with temperatures in some areas falling 15°C below seasonal average, Western Europe is now facing an unprecedented and extremely rare spring heatwave in late May. This abnormal weather pattern is is expected to severely impact this year's crop yields. Production updates include Röhm GmbH, which is scheduled to shut down its 95 ktpa MMA plant in Wesseling, Germany, for maintenance from June 12 to June 28.

United States: The MMA market’s supply-demand fundamentals currently appear relatively balanced. However, downstream industries continue to face pressure from high raw material costs, while the U.S.-Iran conflict remains at an impasse under a fragile ceasefire with no clear resolution in sight, creating a highly challenging macroeconomic environment. This situation is further compounded by the scheduled maintenance shutdown of a major MMA producer in Q2. In April, U.S. housing and automotive sectors continued to experience sluggish growth. At the same time, US consumer sentiment continues to weaken amid concerns over high living costs and declining disposable incomes. According to market reports, Mitsubishi Chemical Group reported weaker earnings in its MMA & derivatives segment for FY2026, mainly due to lower MMA prices and sluggish market demand. Trinseo announced plans to file for bankruptcy protection following a restructuring agreement with its major lenders. Meanwhile, on May 21, a 34,000-gallon storage tank at GKN Aerospace's facility experienced a self-polymerization reaction due to a valve failure in the refrigeration system. Approximately 7,000 gallons (about 26,000 liters) of liquid MMA inside the tank underwent a rapid temperature increase, releasing large amounts of high-pressure toxic vapors. The tank reportedly began bulging outwards, prompting the evacuation of up to 50,000 residents across six cities, including Garden Grove, Anaheim, and Westminster, covering an area of ​​approximately 23 square kilometers. Regarding production updates, Röhm GmbH is scheduled to conduct a planned maintenance turnaround during Q2.

Asia: MMA market prices declined sharply in the second half of May amid stabilized sentiment and weak buying interest. Ongoing disruptions around the Strait of Hormuz have continued to pressure crude oil and feedstock markets, causing raw material values to fluctuate. As such, some Asia-based producers continue to face tight supply conditions. Most MMA buyers currently hold sufficient inventories and remain cautious about procurement following recent declines in China domestic prices. On the MMA side, several MMA producers have reduced or shut down operating rates due to weak market prices and elevated production costs. In Taiwan and South Korea, spot import activity has remained limited as softer market prices and adequate domestic supply have further weakened import demand. In Thailand, MMA supply is tight, and market sources indicate that a major MMA producer plans to reduce operating rates due to limited raw material availability and a scheduled maintenance turnaround. Meanwhile, Asia Petrochemical Industry Conference (APIC) 2026 was held on May 28–29 at the Hilton Fukuoka Sea Hawk in Japan under the theme ”United by Chemistry for a Sustainable Tomorrow.”

CHINA MARKET OVERVIEW

China’s domestic MMA market prices remained mostly stable amid persistent supply disruptions among non-China-based producers. Most sellers t largely maintained their selling indications while monitoring market trends, whereas downstream buyers adopted a wait-and-see stance and were in no rush to purchase due to unfavorable margins. Most MMA producers are also continued to face pressure from high production costs and weak market demand following the National Labor Day holiday. As a result, MMA market prices slightly declined by around CNY 500–1,000/mt, with current prices ranging between CNY 12,000/mt and CNY 13,000/mt ex-warehouse (EXWH). However, upstream raw material costs remained elevated. Acrylonitrile (AN) prices continue to support high hydrogen cyanide (HCN) costs. Regarding production updates, CNOOC Dongfang 200 kpta acrylonitrile (AN) plant restarted in early of May after completing a planned turnaround. Sinochem Quanzhou’s acrylonitrile (AN) plant remained offline, and the restart schedule could not yet be confirmed. Shandong Wanda (Keluer)’s 260 kpta acrylonitrile (AN) plant shut down two units in late April and remained offline throughout May. Zhejiang PC acrylonitrile (AN) plant continued operating only one 130 kpta unit due to technical issues. Meanwhile, Shanghai Secco and Sinopec Zhenhai continued operating at curtailed capacities. PetroChina Jilin’s acrylonitrile (AN) facilities, with a combined capacity of 712 ktpa, also conducted alternating maintenance turnarounds and operated at reduced rates. PetroChina Fushun’s 92 ktpa acrylonitrile (AN) plant has remained offline since early March and had not restarted as of May. As a result, the overall operating rate increased slightly but remained below 65%, while MMA operating rates in China were estimated to have risen to around 50%–70%. Notable supply-side updates include:

1. Jiangsu Sierbang Petrochemical: Two units at its 340 ktpa MMA plant in Lianyungang have been shut down.
2. Qixiang Tengda: Its No. 1 unit at the 200 ktpa MMA plant in Shandong has shut down for maintenance.
3. Shandong Wanda: Its 125 ktpa MMA plant in Shanghai was scheduled for shutdown on May 25.
4. Shandong Wanhua: One unit at its 200 ktpa MMA plant in Shanghai was scheduled for shutdown on May 16.
5. Sinochem Quanzhou: Its 100 ktpa MMA plant in Fujian was scheduled for a maintenance shutdown.
6. Dongying Yingke Chemical: Its 50 ktpa MMA plant in Shandong was scheduled for shutdown.
7. Panjin Sanli: Its 50 ktpa MMA plant in Liaoning was scheduled for shutdown on May 24.表單的頂端

表單的底部

DOWNSTREAM

On the PMMA side, PMMA feedstock MMA spot prices continued to soften amid persistent headwinds affecting regional market conditions, while weak feedstock sentiment dampened buyers’ confidence. Most PMMA buyers had already procured sufficient inventory between March and April against the backdrop of the Middle East conflicts. At the same time, sellers faced intensified competition, which pressured selling prices downward for June shipments. Demand remained tepid, and buyers generally preferred to maintain a wait-and-see approach. Ongoing uncertainty surrounding the Middle East conflict kept the market cautious regarding upstream price fluctuations and the gradual recovery of supply. In addition, according to reports, new PMMA capacity from Zhejiang Huashuai Special New Material Technology (35 ktpa in Jiaxing) and Liaoning Dingjide Petrochemical (100 ktpa in Liaoning) is expected to commence operations in January 2027. In China, ICIS data showed that MMA spot prices stabilized at around CNY 12,300–12,500/mt EXWH by the end of May. Prices for light-emitting diode (LED) and general-purpose (GP) grades declined to around CNY 13,500–15,200/mt EXW for locally produced material, while imported material prices dropped to approximately CNY 16,000–17,000/mt EXWH. Meanwhile, Southeast Asia GP spot prices stabilized at around US$2,250–2,350/mt.

On the acrylic sheet side, demand for cast sheets remained weak. The market continued seeking a new balance between elevated feedstock costs, reduced supply, and sluggish demand. It remained difficult for downstream buyers to pass on price increases following the outbreak of the Middle East conflict. In addition, cast sheet producers have had to roll over or reduce prices in an effort to stimulate demand. In Vietnam, cast sheet factories have been actively reducing MMA and cast sheet inventory, as high MMA costs could not be passed on to end users, while lower-priced Chinese cast sheets further dampened market sentiment. Some buyers believe MMA prices may decline further, as Chinese MMA suppliers continue aggressively pushing market share. In Thailand, domestic demand has weakened amid subdued market activity. In Indonesia, local demand has also softened heading into the rainy season, while export orders have declined amid sluggish macroeconomic conditions and elevated cast sheet inventory levels.

In terms of pricing, cast sheet offers slightly decreased to around US$2.80–3.10/kg CFR.

On the resin side and others, most resin producers have been forced to reduce operating rates due to elevated raw material costs and weak demand. However, the special resins used in semiconductor sector continued to experience healthy demand, supporting full operating rates. Demand from the ABS sector appears to slow down, as ABS prices continued trending downward. However, several Chinese producers shut down for maintenance turnaround or curtailed operating rates beginning in May. As a result, the overall operating rate for ABS declined to below 60%. Despite the tighter supply, ABS prices continued to decrease amid soft demand and reduced feedstock costs. In the acrylamide sector, market demand remained relatively stable, while prices softened marginally, following a similar trend to the acrylonitrile market. Overall demand from the NBR sector also remained steady. However, NBR prices continued to trend downward due to lower feedstock costs and fading demand. In India, the wide gap between buying and selling indications in the MMA import markets continued to weigh heavily on trading activity, as buyers and sellers were unable to reach a compromise during May and June.

MMA PRICES