Methyl Methacrylate (MMA) can be manufactured by various methods, the principle one being the cyanohydrin route. Manufacturing process of Methyl Methacrylate involves petrochemical as a feedstock, thus any fluctuations in the crude oil prices impact the MMA market. MMA is a monomer usually used as a raw material for the production of several polymers.
Majority of MMA produced is polymerized into two categories namely homopolymers and copolymers. Around 55% of MMA is used as raw material in the production of Polymethylmethacrylate (PMMA). Other applications include Surface Coatings, Polymer Modifiers accounts for the remaining 45% of the total global MMA demand . PMMA is the most commonly used polyacrylate and its increasing use in end-use industries is accelerating the MMA market. Other major driving factor for MMA demand is rise in demand for lightweight automobiles with improved emission control.
The global MMA demand is forecast to grow at a CAGR of 3.6% in the long-term forecast till 2030. China and the United States are the major consumers of MMA. Emerging chemical and plastic manufacturing industries in the growing economies of Asia-Pacific region is likely to push the MMA market upwards during the forecast period. China"s share is likely to account for around 23% of the global MMA consumption.
The global installed capacity of MMA in 2016 was 4281 Kiloton which grew to 5111 Kiloton in 2021. China is one of the major players in MMA production and accounts for around 1402 Kiloton of MMA capacity. Major manufacturers include CNPC group, Advent International, Lucite, Mitsubishi accounting for 68% of the total capacity. Arkema S.A., Asahi Kasei Corp., BASF SE, Chimei Corp., Chirag Enterprise, Kowa India Pvt. Ltd., KURARAY Co. Ltd., LG Chem, LOTTE MCC Corp., Mitsubishi Chemical Corp., Mitsubishi Gas Chemical Co. Inc., Mitsui Chemicals Inc., RAG Stiftung, Saudi Basic Industries Corp., are some of the key manufacturers of MMA.
There has been a steep decline in crude oil price from Oct 2018 ($75/barrel) to Dec 2018 (Around $45/barrel) and has led to a decline in the MMA production cost. This will facilitate the MMA manufacturers to provide the monomer at cheaper rates and further impact on the PMMA price.
More than 50% of MMA is used to manufacture PMMA which is widely used in the automotive industry. It is extensively used in the automotive industry to manufacture a variety of parts and component such as, light covers, decorative trims, door entry strips, ambient lighting, automotive glazing etc. PPMA is favoured in the automotive industry because it is light weight, high tension strength, excellent impact, peel strength, high flexibility, and temperature resistance.
Asia-Pacific is estimated to be the largest market for PMMA accounting for almost 60% of total PMMA demand. The growth in demand can be attributed to rising demand for high quality plastics in automotive and electronics segments. Moreover, the growing infrastructural development is increasing the demand of PMMA in Asia-Pacific. The economy in Asia-Pacific has been thriving on account of the advancements witnessed in the automobiles, electrical & electronics, Industrial and consumer & home appliances. Growing purchasing power in the developing economies is seen as a key driver of demand for plastics like PMMA.
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