European MMA and acrylate ester markets have shown caution amid economic uncertainties, with demand remaining stagnant; optimism stemmed from Germany’s €500B infrastructure spending plan amid long import lead times, stable demand

April 11, 2025 (ICIS Chemical Business (CBNB Abstracts)) –

At the European Coatings Show in Nuremberg , Germany , methyl methacrylate (MMA) and acrylate ester players in Europe sought certainty wherever possible amid the wider economic and geopolitical uncertainties. Sentiment among participants was trying to adapt to the geopolitical and economic challenges the markets, players, and consumers are all witnessing. A trader described the sentiment for the acrylic acid (AA), MMA, and acrylate ester participants to be cautious. The European markets can wait and evaluate the effects of tariffs and the worldwide trade war because of predictable but slow demand and relatively long supply. However, some players still had a negative outlook, particularly related to the automotive market, which continues to witness additional job cuts within Europe . Aside from automotive, the outlook from various products was one of balance, and a base market activity and demand level that will not drastically change throughout 2025. The lack of pessimism from players that are not part of the automotive market could be attributed to the fact that the market is already at the bottom. Although in line with forecasts, demand is flat and remains relatively dull. Furthermore, the players are not expecting significant growth, even during the usual coatings season, with possibly only the unusual extra truck required to be bought on the spot market. There was an unusual glimmer of real optimism despite the market's apathy. This went beyond the market's stability and predictability, which were welcomed in the aftermath of an unpredictable period since the start of the coronavirus lockdowns five years ago. This positivity came from one manufacturer and was directly related to the new plans of the German government to allocate EUR 500 bn for infrastructure, and relax the regulations around the nation's debt brake to allocate more for public sector spending. Another factor discussed at the event was Asian imports and the arbitrage window's development. While Asian imports, particularly from China , have substantially affected the European sector, the arbitrage window, currently only barely open, is considered marginal and a risk amid the extended lead times that would witness material landing during the conventionally slow months in summer-2025. Traders and buyers are being reluctant to risk for now, partially because of the long markets in Europe , and ready to wait before ordering imported materials. The core message was the expected demand stability for the rest of 2025. A line graph shows the European AA and MMA spot prices (EUR/tonne) in FD NWE basis from Apr 2022 to Mar 2025 . Original Source: ICIS Chemical Business, http://www.icis.com/.