In H2 April, the MMA market turned to be stable after the previous huge fluctuations. The primary market had been stable for nearly two months. The secondary market in East China had fallen to a low level. The crazy March and April, boosted by the jumping export, came to the end. The overall market had become flat.
However, in the second week of May, the exported MMA market heated up again.
In the last two days of May’s second week, major exporters made inquiries intensively and Chinese MMA traders were the main targets. At beginning, the negotiation price was around RMB 17,800/mt. But, some bullish factors supported the market. The 200kt/a MMA unit of Lucite and the MMA unit of EVONIK will undergo the maintenance. Hence, the market heated up. The negotiation price reached above RMB 18,000/mt.
Customers in Europe and America payed more attention on the Chinese market. The arbitrage space was small. So, the actual dealing was thin.
Moreover, most Chinese MMA producers supply goods to domestic users by contracts.
Exporting MMA is a good beginning. More and more MMA projects will be built in China and enjoys the fastest growth rate. By 2020, the MMA capacity will be 1,200kt/a. With the break of technology and trade barrier, China will plays a key role in the global MMA market. Moreover, the units in Europe and America will suffer more risks with the increasing usage periods. The Chinese MMA market is promising.
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Market Analysis - Monthly Report - June, 2020 - Pharmaceutical