[PMMA Weekly Review] Raw Material Price Fluctuations, Weak Demand, Particle Prices Continue to Decline

I. Market Focus This Week

1. Trends on the feedstock side diverged: MMA recovered slightly, while methyl acrylate continued to decline. Overall cost support remained weak, making it difficult to provide effective support for PMMA pellet prices.

2. The production load in the industry continued to decline. This week, the operating rate of the PMMA pellets industry fell to 50%, down 3 percentage points from the previous week, indicating that enterprises’ production enthusiasm continued to weaken.

3. Downstream end-users continue to destock, with no increase in new orders. Overall market purchasing interest remains sluggish, and trading activity has long stayed subdued.

II. Market Analysis This Week

During the current period (May 29 to June 4, 2026), China’s domestic PMMA resin market continued to decline overall, with the price spread between high-end and low-end products narrowing further. The market transaction focus kept moving downward, with mainstream deals ranging from RMB 12,800 to 16,300/mt. Overall, the market remained under dual pressure from cost divergence and weak demand, extending its downward trend amid a lack of effective positive support.

The raw material side showed clear divergence. Spot MMA prices in East China edged up slightly, rising by RMB 20/ton during the week, but the increase was minimal and provided limited support to production costs. Methyl acrylate prices continued to decline, falling by RMB 200/ton during the week, a drop of 2.19%, leaving overall raw material cost support still weak. As a result, quotations for high-end PMMA granules fell sharply amid loosening raw material costs, while low-end granules remained weak due to raw material constraints, with relatively limited declines. This ultimately led to a continued narrowing of the price spread between high-end and low-end products.

Demand remains the core drag on the market. The downstream end market continues to be sluggish, with most product manufacturers relying on previous inventories to maintain production, and no significant increase in newly signed end-user orders. In the spot market, only sporadic restocking for rigid demand is seen, while traders and downstream buyers generally show low enthusiasm for stocking up. Trading activity is thin, and the weak market atmosphere is completely unable to offset pressure from costs and fundamentals, driving pellet prices to continue falling.

III. Analysis of Market Influencing Factors

1、Industry profits have shrunk significantly.This week, the average weekly gross profit of the PMMA particle industry was only 1,090 yuan/ton, down sharply by 749 yuan/ton from the previous period, with corporate profit margins rapidly narrowing. A slight rebound in raw material prices was insufficient to offset the loss pressure caused by a sharp decline in product prices. Production enterprises are facing intensified operating pressure, and market confidence in holding prices firm is severely lacking.

2、Production load continues to decline.This week, the operating rate of the PMMA particle industry remained at 50%, down three percentage points from the previous period. Affected by weakening market conditions, shrinking profits, and increasing shipment pressure, some enterprises proactively reduced operating loads to hedge risks, leading to a contraction in overall industry output. However, the decline in demand far exceeded the reduction in supply, failing to provide support to the market.

IV. Market Forecast for Next Week

Considering feedstock, supply-demand, and profitability fundamentals, the weak trend in the domestic PMMA granule market is unlikely to reverse next week, with the overall market expected to remain at low levels and fluctuate downward.

On the cost side, although MMA is supported by favorable spot-market factors in the short term and is expected to edge up slightly, the room for gains is limited, making it unable to effectively lift PMMA production costs or reverse the overall weakness in raw materials. Cost support therefore remains weak.

On the supply side, the industry is currently suffering from weak profitability, and some producers have an incentive to reduce operating rates to avoid risks, which may lead to a short-term or temporary tightening of spot supply. However, as newly added capacity continues to come onstream and ramp up, the incremental supply will fully offset the reduction in output caused by producers’ cuts. As a result, the market is unlikely to face any substantive shortage, and there is no significant bullish support from the supply side.

Demand remains the biggest drag on the market. Downstream buyers continue to draw down previously accumulated inventories, making only limited replenishment purchases when prices are low, mainly to meet immediate rigid demand. Orders for end products have yet to show any meaningful recovery, and the market lacks support from large-volume transactions, making a concentrated restocking cycle unlikely. Demand continues to remain weak.

Overall, the current market lacks favorable factors, with a fundamental imbalance between bulls and bears, leading to a weak dominance. It is expected that the PMMA particle market will continue next week.Low-level weak oscillationThe trend indicates that prices still have limited room to decline further, while trading activity in the market remains subdued.

V. Key Focus Areas

1. Cost side: Price fluctuation trends of MMA and methyl acrylate; tracking the transmission impact of raw materials on resin costs.

2. Supply side: Changes in enterprise operating load and the progress of new capacity.

3. Demand Side: Progress of downstream inventory digestion, recovery of terminal orders, and market restocking efforts.