SunSirs: Cost and Demand are mutually Beneficial, China PMMA Prices are Rising

According to the Commodity Market Analysis System of SunSirs, as of March 21st, the average price of PMMA, a general transparent premium product in China, was 16,066.67 RMB/ton. This week, PMMA prices were mainly narrow and strong, with a 2.55% increase compared to the same period last month, with an increase of around 400 RMB/ton. Currently, the upstream MMA prices are strong, and PMMA has some support on the cost side. In the first half of March, MMA prices continued to be strong, but in the second half of the month, prices slightly declined. Currently, the overall market demand for PMMA is still good, and the market is recovering, with manufacturers mainly operating at high prices.

This week, PMMA prices have been the main trend, with a 2.55% increase compared to the same period last month and a 1.05% increase compared to the same period last week. Currently, the mainstream market price is around 16,000 RMB/ton. The operating rate of PMMA in March was around 64%, while the operating rate of upstream factory MMA was around 48%. The supply of PMMA in March was significantly lower than last month, with a decrease in on-site operating rate and supply side. In late February, Mitsubishi Chemical announced that it would stop the ACH process MMA production and acrylonitrile related production in the Hiroshima factory, and withdraw some business. The annual production capacity of MMA in the Hiroshima factory is 90000 tons, while Mitsubishi Chemical will continue to produce C4 in the Hiroshima factory. MMA monomers produced by the process will continue to be produced in the Okayama factory, acrylonitrile and sodium glycine will be produced in the Kanto factory, and acrylamide will be produced in the Kanto factory. At the same time, there are new reports from Rom Chemical that they will expand their production capacity of polymethyl methacrylate (PMMA) at the world's largest production base in Worms through the new factory to meet the steadily growing demand from the automotive industry. Currently, due to the drive of new energy vehicles, PMMA as one of the raw materials for automotive parts, demand is also further increasing, Drive manufacturers to expand and expand production.

In terms of cost: MMA prices remained mainly upward in March, while prices remained stable and fell in late March. Currently, factories have shown signs of offering prices, mainly through price support operations. The overall market negotiation focus is stable, with normal inventory consumption. Downstream procurement enthusiasm is still acceptable, and on-demand procurement is the main focus. The expected production of MMA in March is about 102,000 tons, a decrease of about 2.2% compared to the previous month, and an increase of about 8.9% compared to the same period last year. Currently, the on-site spot supply is still acceptable.

In terms of cost, the acetone market showed a stable and weak trend in March, with prices rebounding and rising in late March. Currently, the mainstream price of acetone in the market is around 7,250-7,300 RMB/ton, and port inventories decreased at the beginning of the week. Traders have a strong mentality of supporting prices, and the focus of market negotiations is currently high. The transaction atmosphere is good. In April, several phenolic ketone companies reported maintenance news, with maintenance time from the end of March to the end of April, which is about one month. During the maintenance period, the market supply will be reduced, and downstream PMMA will have some positive support on the cost side.

In terms of demand: Currently, the downstream demand for PMMA is still acceptable, and the procurement atmosphere is positive. With the popularity of power vehicles, PMMA, as one of the raw materials for producing automotive parts, is widely used in projects such as car lights, windshields, and windows. Due to its high strength, toughness, and wear resistance, it can effectively improve the safety and comfort of cars. Since March, the demand for power vehicles has increased, and there has been a shortage of supply, leading to a surge in the price of PMMA.

PMMA analysts from Business Society believe that currently, the domestic supply of PMMA is limited, inventory pressure is not high, and the operating rate is relatively stable. Many manufacturers are mainly with a price support mentality, and downstream demand is constantly increasing. There is a slight shortage of upstream supply. Although some companies have started to expand production, it will take some time to officially release production capacity, and the cost side has a certain supporting effect. Therefore, it is expected that PMMA prices will maintain a narrow and strong trend in the short term.

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