Competition in the domestic methyl methacrylate (MMA) market is becoming increasingly fierce, and expanding exports is the general trend.

Methyl methacrylate, referred to as MMA, is an organic compound with the chemical formula C5H8O2. It appears as a colorless and transparent liquid, is slightly soluble in water, and is soluble in most organic solvents such as ethanol. Methyl methacrylate is mainly used to produce molding compounds, acrylic fibers, pharmaceutical polymer materials, organic glass (PMMA) coatings, etc.; main application areas include electronics, plastics, chemicals, paints, coatings, aerospace, optical fibers, etc.; main production The methods include acetone cyanohydrin (ACH) method, methacrylonitrile (MAN) method, isobutylene three-step method, isobutylene two-step method, ethylene-propionaldehyde method, ethylene-methyl propionate method, etc.

PMMA is currently the largest application field of methyl methacrylate in China, accounting for 65%. PMMA has a wide range of application fields, including instrumentation, automotive lights, consumer electronics, advertising, home appliances, etc. Methyl methacrylate is an important raw material for PMMA. In recent years, driven by the continued increase in PMMA market demand, domestic MMA new production capacity has continued to increase and the overall production capacity has continued to expand. For example, Huayi Yuhuang Phase II with a capacity of 50,000 tons/year, Jiangsu Jiankun with a capacity of 150,000 tons/year, and Zibo Qixiang Phase II with a capacity of 100,000 tons/year in 2021 have been completed and put into operation. In this context, according to the Industrial Research Center The “2022-2026 Methyl Methacrylate (MMA) Industry In-depth Market Research and Investment Strategy Suggestions Report” shows that in 2021 In 2018, my country’s methyl methacrylate production capacity reached 1.786 million tons, a year-on-year increase of 18.7%.

In addition to PMMA, plastic processing aids ACR, MBS and surface coatings are the second and third largest application markets of MMA. At the same time, some special coatings and special monomers will become new application areas for MMA in 2021, and the overall domestic market demand for MMA will show a steady growth trend. However, since the growth rate of new domestic MMA production capacity is much higher than the growth rate of downstream demand, in the future, under the background of continued expansion of production capacity, the problem of overcapacity will become more serious and competitive pressure will continue to increase.

At present, my country has become the largest producer of MMA in the world. Domestic companies mainly include Yixiang Chemical, Zibo Qixiang, Mitsubishi Chemical, Longxin Chemical, Hongxu Chemical, Jilin Petrochemical, Huiling Chemical, Yuetian Chemical, Yuhuang New Materials, etc. Among them, the company with the largest domestic production capacity in 2021 is Yixiang Chemical, with a production capacity share of 14%; followed by Zibo Qixiang and Jilin Chemical, with a production capacity share of 12% and 11% respectively. At this stage, there are a large number of domestic MMA manufacturing companies, the industry concentration is low, and the market competition is fierce. In the future, as the gap between supply and demand continues to increase, domestic MMA competition pressure will continue to increase, and the industry needs to find new ways to reduce overcapacity.

Industrial analysts personnel said that expanding the scale of the export market will be an important means to alleviate the problem of overcapacity in MMA in China. According to data from the General Administration of Customs, my country’s MMA exports will surge in 2021, with export volume reaching 178,700 tons, a year-on-year increase of 264.7%. In the future, against the background of the commissioning of multiple new domestic production capacity devices, the export market will become a key factor in determining the direction of the domestic MMA market. Therefore, in the future, local MMA companies will need to continuously improve their technical level and improve their core competitiveness, thereby expanding the scale of exports and promoting a balance between supply and demand.