Driven by shortages of raw material acetone, soaring prices in China and a big recovery in demand, On Feb. 23, Asia MMA CFR China prices hit their highest level since S&P Global Platts began assessing the market in June 2020. On February 23, the Asian MMA CFR China price rose $48 / tonne from the previous day to $1,925 / tonne. The high on Dec 7, 2020, was US $1,659 a tonne, Platts data showed.

CFR China surge is mainly due to the surge in China China MMA prices, which rose 3.10 percent on Feb 23 and 19.73 percent for the week to 149.5 million yuan/ton. MMA production in the United States is also reported to have been affected by disruptions in the production of raw material acetone as well as a shortage of raw materials due to heavy snow. "A major MMA producer in the United States has declared force majeure, mainly due to a shortage of raw acetone in late January," a South Korean MMA trader said.

Sources said the United States snapped up Asian MMA cargoes, thereby further tightening supplies in Northeast and Southeast Asia. The U.S. Gulf Coast FOB- China CFR acetone spread widened to $744 a tonne on Feb 23, Platts data showed. The spread can fully cover the freight of 10,000 to 12,000 tons of containers, equivalent to $63 / ton, making the Asian-US acetone arbitrage window open.

MMA prices were also boosted by a sharp recovery in the downstream sector. On the downstream side, on February 23, Asia PMMA universal resin CFR China was 2,100 US dollars/ton (injection grade), up 38 US dollars/ton from the previous day, due to rising raw material prices and rising prices in China. In December 2020, China's monthly auto production rose 11 percent year-on-year to 10.62 million units. Planned overhauls of MMA factories are also contributing to tighter MMA supply in Asia. South Korea's Lotte MCC has shut down its 110,000 ton/year MMA plant in Yeosu for an overhaul since mid-February.