The chemical industry in Europe is currently facing a significant challenge due to a shortage of essential materials, with 2-Hydroxyethyl methacrylate (2-HEMA), Methyl Methacrylate (MMA), and Butyl Acrylate being particularly affected. These shortages are primarily attributed to the ongoing Red Sea crisis and related Suez Canal supply chain issues, combined with low to almost no production from European manufacturers and delayed imports.
Understanding the Crisis
The crisis began in late 2023 when Houthi rebels in Yemen escalated their missile and drone attacks on commercial vessels navigating the Red Sea, targeting not only military but also civilian ships. These disruptions have had a 'dramatic' impact on global trade, particularly affecting the chemical sector by significantly delaying raw material shipments destined for Europe. The situation has been exacerbated by pre-existing challenges, such as the war in Ukraine, further straining the global supply chain.
The Impact on Chemical Availability
- 2-Hydroxyethyl methacrylate (2-HEMA): The scarcity of 2-HEMA in Europe is stark, with material availability not expected until March. The root cause mirrors that of MMA - the Red Sea crisis, compounded by minimal European production and import delays.
- Methyl Methacrylate (MMA): The situation with MMA is particularly critical, with the spot market movement pushing prices over €3000/MT FCA. The shortage is anticipated to persist until May, with the future market dynamics dependent on imports from China and demand shifts in Europe.
- Butyl Acrylate: Prices for Butyl Acrylate have surged to around €1450/MT FCA Rotterdam in March, although materials remain available.
- 2-Ethylhexyl Acrylate (2-EHA): 2-EHA is priced at approximately €1670/MT FCA Rotterdam, with material availability not being an immediate concern.
SAME Chemicals' Response
In these turbulent times, SAME Chemicals stands out as a beacon of hope for businesses affected by the shortages. With our strategic foresight and robust supply chain, we are prepared to offer 2-HEMA in March, ahead of many competitors. Our proactive approach in securing diverse sources and our longstanding partnerships enable us to navigate these challenges more effectively than many in the industry.
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Key words: Chemical industry Europe, 2-Hydroxyethyl methacrylate shortage, Methyl Methacrylate price surge, Butyl Acrylate availability, Suez Canal supply chain disruption, Red Sea crisis impact, SAME Chemicals supply solutions
