United States Methyl Methacrylate (mma) : The Growing Production And Consumption Of Mma In The United States

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The United States is one of the largest producers and consumers of methyl methacrylate (MMA) globally. Domestic production of MMA in the U.S. has been steadily increasing over the past decade to meet the growing demand. The three major producers of MMA in the country are Lucite International, Evonik, and Arkema. Together they operate 8 MMA plants across 5 different states. Lucite International has 3 plants - one each in Bernville and Paulsboro, PA and one in Leuna, Germany. Evonik has 2 plants located in Mobile, AL and Marl, Germany. Arkema operates single plants in Calvert City, KY and Serquigny, France. These producers have been consistently expanding their MMA capacities through debottlenecking of existing units and strategic investments. For instance, Evonik recently completed a 50,000 metric tons expansion at its Mobile plant in 2021, bringing its total capacity there to 350,000 metric tons per year.

 
Demand And United States Methyl Methacrylate (MMA)

The rapid growth in the demand for MMA in the U.S. can be attributed to its widespread end-use applications. Acrylic resins manufactured using ...
... Methyl Methacrylate MMA as the primary monomer find application in a variety of such as paints & coatings, adhesives & sealants, plastics, and construction. Paints & coatings constitute the leading end-use segment for MMA in the country accounting for over 30% of total demand. MMA-based acrylic resins are preferred in the paints owing to properties such as good mechanical strength, resistance to weathering, flexibility, and adhesion. The growth in infrastructure, constructions projects, and manufacturing activities in the U.S. has led to higher consumption of paints and coatings, thereby augmenting the MMA demand.

Adhesives & sealants are another major end-use segment representing around 25-30% of total MMA consumption. Acrylic adhesives synthesized using MMA offer high bond strength even to difficult substrates and excellent resistance to moisture, temperature fluctuations. They find application in construction, automotive, packaging, pressure sensitive tapes etc. The booming e-commerce along with growth in other MMA-consuming sectors like automotive and electronics is driving the demand for adhesives and sealants. MMA-based acrylic resins and polymers also find usage in plastic products, molded items, fiber, films and sheets contributing to 15-20% of total MMA demand. The plastic goods segment is expected to witness steady gains in MMA consumption over the next 5 years with growth in the packaging and consumer goods.

Imports Fulfill Domestic Shortfall

Even with expanding domestic production capacities, the U.S. demand for MMA far exceeds local supply. As a result, imports play a key role in meeting the shortfall. In 2021, U.S. imports of MMA stood at an estimated 750,000 metric tons as per  estimates. The major import sources are Asia Pacific (China, Singapore, Taiwan), Europe (France, Germany, Belgium), and Mexico. China alone accounted for 35-40% of total U.S. imports last year due to its large export-oriented production capacities and competitive prices. Given the high transportation and logistics costs, U.S. producers focus on servicing the domestic demand while relying on imports to supplement requirements. However, the fluctuations in global supply and trade issues coupled with rising freight charges pose supply security concerns. This has led producers to continuously debottleneck/expand domestic capacities.

Capacity Additions Lined Up

All major producers have recently announced or are in the process of implementing capacity expansion projects in the U.S. to bridge the supply-demand gap. Evonik is investing $125 million to increase capacity at its Mobile plant by 150,000 metric tons per year. Start-up of the new unit is scheduled for 2024. Arkema in 2019 completed the debottlenecking of its Calvert City plant adding 30,000 tons of capacity. The company now plans to invest $200-250 milliontowards a new 200,000 ton MMA unit at the site by 2025. Lucite International is evaluating multiple options to potentially expand its U.S. assets as well to cater to long-term demand growth. These expansions when completed will add over 380,000 tons of new MMA supply annually within 3-4 years, substantially reducing reliance on imports. However, additional projects might still be required considering projected growth of 3-4% till 2030.

With its large internal and recovering economy, MMA demand in the United States is forecast to remain robust. Domestic producers are working aggressively through capacity additions to mitigate supply risks and gain self-sufficiency. While imports will continue meeting a part of requirements, initiatives are on to achieve optimum import-export parity and buffer the from global supply chain disruptions. Long term contracts with overseas partners also provide import stability. The U.S.  is well positioned to capitalize on opportunities arising from increasing MMA consumption in paints, adhesives, plastics and others.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)