Spot
The methyl methacrylate (MMA) spot price has moved down by €50/tonne at the high end to €2,150-2,300/tonne FD NWE. Business took place this week at €2,250/tonne FD NWE for one truckload of material. Demand for spot material is slightly softer as is expected for this time of year, but is expected to improve in September. August prices are likely to come down further as business slows.
Monthly contracts
Monthly contracts for July are valued at €2,280-2,420/tonne FD NWE. Price movements from June varied from a rollover to increases of up to €50/tonne.
Some buyers are now expecting price reductions on August monthly contracts because of weaker demand, better availability and lower acetone costs.
Third-quarter contracts settle
European third-quarter contracts settled last week at €1,990-2,130/tonne FD NWE. The new range reflects an increase of €30/tonne above second-quarter values, because of limited availability.
A few contracts settled at a rollover to increases of plus €20/tonne, while an equally small portion of the market incurred €50/tonne hikes for the quarter. Most agreements were concluded at increases of €30-40/tonne, with the majority settling at the lower end of this range.
Despite improved availability, softened demand, a €64/tonne drop in the July feedstock acetone price, and lower spot values, sellers have largely been able to secure increases as the market remains balanced to tight.
Market
Demand is softer and at the expected level for the time of year as players along the supply chain prepare for a number of maintenance turnarounds during the summer period.
Availability is good and buyers are able to obtain required volumes.
Asia and the US
Prices of bulk MMA are stable this week, while prices of smaller-sized isotank cargoes of up to 500 tonnes softened this week, amid lower deals and buy-sell ideas.
Most Asian producers are still eyeing a rollover of offers for August, but have not decided on their prices yet. Only one major producer said he would nominate a rollover for August, amid rising feedstock acetone and naphtha prices.
In the US last week, supply was still tight and most producers expected to remain on allocation through August. Demand for MMA was strong, with buyers looking to procure as much material as possible. Sources agreed that the plastics and sheet market was strongest, supported mostly by the electronics and automotive industries.
Upstream
Softer summer demand and easing availability have resulted in a €20/tonne decrease at the high end of the acetone spot range in Europe. Spot is now valued at €880-920/tonne FD NWE.
Business is largely taking place within the published range, with nothing above €920/tonne FD quoted this week. Prices are, however, on a downward trend, as some traders said €900/tonne FD is no longer achievable. Sources indicate that offers are being made at €850-870/tonne FD, and even values at €800/tonne FD are surfacing.
September prices are expected to rebound as demand should increase, putting a strain on cargo availability.
($1 = €0.70)
This week on ICIS ( www.icis.com):
28/07/2011 10:02 S Korea’s DMMA to shut PMMA plant in mid-August for turnaround
27/07/2011 08:13 Taiwan's Formosa restart plans may get delayed by fire
26/07/2011 16:40 US July barge acetone contracts fully settle down by 7% from June
