The global demand for methyl methacrylate (MMA) has consistently grown at an average rate of 4% to 5% annually since 2002, and this trend is expected to continue with a projected growth of 3% to 5% in the coming years. Asia remains the key driver of this growth, with an anticipated annual increase of 7% to 8%, fueled by rising needs in the LCD, construction, and automotive sectors. In contrast, Western Europe and the U.S. are facing a decline in MMA demand due to the ongoing global economic slowdown. While the U.S. market is still expected to grow at around 3% per year, this is slower than the growth seen elsewhere globally.
Before 2007, the global MMA market was characterized by tight supply conditions. However, with the completion of several new production facilities, supply tensions eased significantly by 2008. This period included Luckett International’s fourth quarter of 2008, during which Singapore launched a new 120,000-ton-per-year plant. MMA is primarily used in polymerization processes to produce PMMA homopolymers and copolymers, which find extensive use in casting, molding, and extrusion applications. PMMA sheets are widely utilized in automotive lighting systems, construction materials like sanitary fixtures and building components, and in signage and glass due to their transparency, durability, and lightweight properties. Additional applications include consumer electronics, optical media, mobile phone displays, cosmetics packaging, toys, and furniture.
MBS copolymers, another derivative of MMA, serve as impact modifiers for rigid PVC and are commonly used in food and pharmaceutical packaging. More than 80% of MMA consumption is concentrated in the construction and automotive industries, both of which have seen reduced demand due to the global economic downturn.
Looking ahead, several new production projects are set to come online in 2009 and 2010. Evonik plans to launch 115,000 tons/year of capacity in Shanghai Xinyi in Q3 2009, while South Korea’s Dashan Company will begin operations on a 90,000-ton/year facility this year. In 2010, Thai MMA will double its Mab Ta Phut plant from 90,000 to 180,000 tons/year. Meanwhile, Quinn Chemical’s 100,000-ton/year project in Leuna, Germany, is scheduled for completion in 2011.
According to SRI Consulting, global MMA production capacity reached approximately 3.7 million tons/year by the end of 2008, with projections of 4.2 million tons/year by 2011.
In the Asian market, MMA prices have been on a downward trend since November of last year, driven by weaker demand from key sectors such as automotive, construction, and electronics. Over the past four months, prices in Northeast Asia dropped from $2,200/ton to $1,700/ton (CIF). In China, local prices are around RMB 12,000/ton (delivered), while imported MMA is priced at about $1,450–$1,500/ton (CIF).
In Europe, contract and spot prices for MMA fell sharply between mid-November and mid-January this year due to declining demand. European contract prices in Q1 dropped by €250/t, reaching €1,425–1,485/t (FD NWE). U.S. contract prices also saw a 20%–30% decline from the previous quarter. The train-delivered price in the first quarter was 77 cents/pound, influenced by weak demand and falling raw material costs. Acetone prices, a key upstream feedstock, fell nearly 50% in the fourth quarter of last year, dropping to 35 cents/lb from 33.5 cents/lb. Similarly, chemical-grade propylene (CGP) prices declined sharply, from an average of 77.3 cents/lb in Q3 to 35.6 cents/lb in Q4.
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