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[Industry Focus]：Supply and demand imbalance, MMA prices soar! Corporate profits soar 11 times

Read： 263 Time：3months ago Source：Financial Union

1. MMA market prices hit new highs

recently, the MMA (methyl methacrylate) market has once again become the focus of the industry, and its price has shown a strong upward trend. According to the Caixin News Agency, in early August, many chemical giants including Qixiang Tengda (002408.SZ), Dongfang Shenghong (000301.SZ), and Rongsheng Petrochemical (002493.SZ) raised the price of MMA products one after another. Some companies even achieved two price increases in just one month, with a cumulative increase of 700 yuan/ton. This round of price increases not only reflects the tight supply and demand situation in the MMA market, but also indicates a significant improvement in the profitability of the industry.

2. Export Growth Becomes New Engine of Demand

behind the hot market of MMA market, the rapid growth of export demand has become an important driving force. According to a large domestic petrochemical company, although the current capacity utilization rate of MMA units is at a low level as a whole, the strong performance of the export market has effectively made up for the lack of domestic demand. In particular, with the steady growth of demand in traditional applications such as PMMA, the export volume of MMA has increased significantly, bringing additional demand growth to the market. Customs data show that from January to May this year, China's cumulative export volume of methacrylate reached 103600 tons, a sharp increase of 67.14 percent over the same period last year, showing the strong demand for MMA products in the international market.

MMA市场产能.jpg

3. capacity constraints exacerbate the contradiction between supply and demand

it is worth noting that despite the strong market demand, MMA's production capacity has not been able to keep pace in time. Taking Yantai Wanhua MMA-PMMA project as an example, its operating rate is only 64%, which is far lower than the full load operation state. This limited capacity situation has further exacerbated the contradiction between supply and demand in the MMA market, making product prices continue to rise under demand-driven.

Stable 4. costs help profits soar

in MMA Price while rising, its cost side remains relatively stable, which provides strong support for the improvement of the industry's profitability. Longzhong information data shows that the current price of MMA's main raw material acetone has fallen to the range of 6625 yuan/ton -7000 yuan/ton, which is basically the same as the same period last year, and it is still at a low level during the year, and there is no sign of stopping the decline. In this context, the theoretical profit of MMA using the ACH process rose sharply to 5445 yuan/ton, an increase of about 33% from the end of the second quarter, and 11.8 times the theoretical profit of the same period last year. This data speaks volumes about the high profitability of the MMA industry in the current market environment.

Prices and earnings are expected to remain high after 5..

The MMA market is expected to continue to maintain its high price and profitability. On the one hand, the dual factors of domestic demand growth and export-driven will continue to provide strong demand support for the MMA market; on the other hand, under the background of steady decline in raw material prices, the production costs of MMA will be effectively controlled, thereby further consolidating its High profitability.

Source: Caixin

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