Global MMA prices surge on supply chain disruptions

Global methyl methacrylate markets have surged to multi-month highs as the effective closure of the Strait of Hormuz disrupts critical supply chains, triggering inventory concerns across Europe, Asia, and the Americas.

Europe

The effective closure of the Strait of Hormuz is expected to delay the replenishment of European MMA inventories, which were already reduced because of a closed arbitrage from Asia.

Platts, part of S&P Global Energy, had assessed the 3-30 day forward DDP NWE methyl methacrylate spot price at Eur2,730/metric ton March 12, the highest level since Sept. 2, 2024 and up 94.9% since the start of the war.

Mitsubishi Chemical, a regular supplier to Europe, has warned customers of potential supply limitations and price increases for MMA due to feedstock supply disruptions.

Also, South Korean MMA producer Lotte Chemical has notified customers of a potential force majeure declaration on monomer production because of "objectively impossible" conditions for procuring raw materials, such as isobutylene.

As a result, limited import volumes were expected to arrive from Saudi Arabia or Asia during Q2, origins that had become integral to European supply following the closure of Trinseo's 100,000 mt/year MMA production plant in Italy in 2025.

"There is likely to be an export ban on petrochemicals out of China so I am hesitant to fix a vessel because I would still have to pay freight, even if it couldn't load," said a distributor.

Suppliers with available stock had taken the opportunity to raise offer levels further as European buyers hurried to hedge supply risks.

"There is not enough material in the market," said a buyer. "People are trying to secure material."

Competition for acetone feedstock volumes in Europe had also intensified as phenol producers maintained conservative operating rates. While acetone and hydrogen cyanide (HCN) availability were limiting factors for MMA production, US acetone imports were incoming while HCN could be diverted from sodium cyanide production to maximize MMA output.

"We are checking all options," said a producer.

The impact of the price increases had filtered down to the polymethyl methacrylate (PMMA) market, leading Trinseo to announce a price increase of Eur420/mt on PMMA resins, effective March 16.

A second PMMA producer said that they had reduced operating rates significantly and were reviewing possible scenarios based on MMA availability.

Americas

US MMA spot prices soared to 18-month highs on March 11 at 120 cents/lb and has been steady since, with sellers keen to preserve inventories amid acute supply concerns for raw materials.

Platts assessed US spot methyl methacrylate at 120 cents/lb ($2,645.52/mt) DDP USG on March 13, up from 99 cents/lb from March 9.

Spot MMA prices have risen 30-35 cents/lb since the start of Middle East war. "No one's offering below 120 cents/lb that I'm aware of," a trader said.

The sharp rise in prices over such a short time poses the risk of "demand destruction," according to a second trader, who said the price shock could be "too much to take."

Mitsubishi Chemical Group's US Methacrylates Division had announced a "protective" sales control for imported methacrylates, effective immediately, a source close to the company told Platts March 10.

A customer letter dated March 9 said the sales control will be set at 100% of the "customer forecast and/or contractual requirement" for methacrylic acid, n-butyl methacrylate, and isobutyl methacrylate.

Downstream, spot PMMA prices hit record highs on the week to March 11, reaching the 124 cents/lb, up 33 cents/lb week over week, according to S&P Global Energy.

Asia

MMA prices in the domestic Chinese market have also increased over the week, though downstream PMMA prices have remained stagnant.

"Because MMA [prices] increased sharply last week and early this week, PMMA [producers] stopped new quotations," a Chinese producer said.

A trader in Singapore said Asian MMA prices have found support from buying interest in markets outside the region.

"Europe has started pulling numbers up as buying interest is growing," the trader said.

The rapid rise in upstream MMA prices is putting pressure on downstream PMMA prices, which have been unable to keep pace with MMA due to weak demand.

On March 12, the rise in MMA domestic Chinese prices stalled, which a producer attributed to the cessation of operations at some PMMA plants.

"PMMA has a lot of pressure, they [PMMA producers] cannot absorb high [upstream] prices, [so] they are planning to shut plants or cut operations," a Singapore-based trader said.

Middle East flows into India, a robust demand hub have also been paused.

Buying interest in India remains firm but the war has unnerved ship owners who are increasingly hesitant to move cargo to India as their options to sail towards the Middle East for new cargoes have stopped.

Platts assessed the Asian methyl methacrylate CFR China down $5/mt day over day at $1,625/mt and CFR Southeast Asia also down $5/mt at $1,720/mt over the same period on March 13

A week ago March 9, Platts assessed the CFR China MMA price at $1,475/mt.

Platts also assessed the Asian polymethyl methacrylate CFR China and CFR Southeast Asia unchanged day over day at $1,760/mt and $1,885/mt, respectively.

The CFR China price was assessed at $1,695/mt on March 9.