1. Newly added production capacities of MAA and MMA in the future.
In 2024, China’s production capacity of Methacrylic acid and its esters was approximately around 2.655 million tons, with a year-on-year growth of 6.64% compared to last year. According to the data monitored by Jinlian Chuang, in the first half of 2024, the 150,000 tons/year MMA production unit of the second phase of Chongqing Yixiang was put into operation. In the second half of the year, Yingke Chemistry put into production the 50,000 tons/year MMA by the C4 method. Meanwhile, Qixiang Tengda restarted its 200,000 tons/year MMA production. This year, it is expected that China’s MMA output will reach around 1.28 million tons, with a year-on-year increase of around 1.13% compared to the same period last year.
The 100,000-ton-per-year new materials production project of Panjin Sanli Zhongke New Materials Co., Ltd. will complete the mechanical completion by the end of May.
In the middle and late April, the MMA pilot plant project for the technological development of producing MAA through ethylene carbonyl esterification undertaken by the third company was completed five days ahead of schedule and successfully achieved the goal of mechanical completion.
Jilin Petrochemical is expected to put into production the 100,000 tons/year MMA produced by the ACH method in the second quarter of 2025. Sinochem Quanzhou is expected to complete the intermediate handover around the end of September and officially start production in the first quarter of 2025.
2. With the reduction in international supply, there are favorable conditions for the export of MMA.
In July 2024, Mitsubishi Chemical Corporation shut down the production unit of methyl methacrylate monomer using the ACH process at its Hiroshima plant and bet on its proprietary Alpha technology. Currently, the company has two MMA production plants using the Alpha technology and plans to build a third plant in the United States.
On September 11, Sumitomo Chemical announced that it would close the three MMA monomer production lines of its wholly-owned subsidiary in Singapore before the end of September 2024. After the production reduction is completed, the MMA monomer production capacity of this plant is expected to decrease by about 80%.
Previously, Kuraray of Japan also tentatively scheduled to start optimizing the production capacity of the MMA plant in its methyl methacrylate resin business from July 2025. It will halve the current annual production capacity of 67,000 tons and stop external sales.
3. Supported by high industry profits, MMA enterprises have considerable profit margins.
In 2024, the MMA industry was at a relatively high level in the industrial chain, presenting a sharp contrast with downstream products. The enterprises in this industry maintained high profitability, which made the impact of costs on the market trend relatively small within the year. The average profitability per ton in each quarter of the year was as follows: 2,288 yuan per ton in the first quarter, 4,046 yuan per ton in the second quarter, 4,837 yuan per ton in the third quarter, and it was expected to be around 1,325 yuan per ton in the fourth quarter. Generally speaking, the profitability level in the first half of 2024 was higher than that in the second half, and the profitability level in the third quarter reached the highest value within the year.
4. In 2024, the export volume of MMA in China reached a high level in the past three years.
The export volume of MMA has risen substantially in 2024. It is expected that the annual export volume will reach around 350,000 tons, with a month-on-month increase of approximately 147.87% compared to last year, hitting a new high in the export volume within five years. The main reasons are as follows: Firstly, the international production facilities in many regions such as Southeast Asia and Europe underwent maintenance in the first half of the year. Since the middle of the year, strategic adjustments in many places in Japan and Singapore have led to production capacity cuts of international production facilities, and the international spot supply has dropped sharply. Secondly, China has a significant price advantage in exports. Moreover, the increment of the downstream PMMA supporting facilities is limited within the year, and the overall growth rate of the demand side is not satisfactory, which has prompted the domestic major producers to increase their willingness to export. The average export prices from 2020 to 2024 were as follows: approximately $2,232.98 per ton in 2020, approximately $2,304.07 per ton of MAA in 2021, approximately $2,319 per ton of MMA in 2022, approximately $1,935.16 per ton of MMA in 2023, and it is expected to be approximately $2,009.34 per ton of MMA in 2024.
5. The first domestic pilot plant for producing MMA by the ethylene carbonyl esterification process has been successfully operated.
On May 25th, the pilot plant for producing MMA by the ethylene carbonyl esterification process, which was developed under the leadership of the CNOOC Research Institute of Chemicals and New Materials (hereinafter referred to as “CNOOC New Materials Research Institute”), started operation smoothly in Yan’an. This is the first domestic full-process pilot plant using this process and is a scientific research project at the group level of China National Offshore Oil Corporation (CNOOC). The successful start-up of this plant will help China master the cutting-edge production technologies in this field, gain the initiative in the MMA market, break through the “bottleneck” technologies, and possess both practical significance and economic benefits.
6. Future major new projects of MAA and MMA.
Japan’s Kuraray announced the completion of the expansion of its methyl methacrylate (MMA) production line, strengthening its leading position in the future global market.
The full production capacity of the Worms plant in Germany is expected to be restored in November 2025. In addition, the market anticipates that the new LiMA MMA production facility in the United States will be put into operation by the end of the fourth quarter of 2024.
Zhenhai Refining & Chemical. This project includes a 200,000-ton-per-year MMA project.
Hami Xinneng Coal Chemical Co., Ltd., a holding subsidiary of Xinjiang Energy (Group) Co., Ltd., plans to invest in a coal-based new materials project. The downstream process units of the project will be used to produce MMA / PMMA products. The construction scale of the project is 400,000 tons per year of MMA/PMMA.
(Source: JLC, Translation: Riley, Editing: Jeff)