US methyl methacrylate (MMA) contract prices were stable for the week ending 5 August, although an August settlement was expected soon.
Producers and buyers agreed prices were likely to either roll over or fall by 1-3 cents/lb ($22-66/tonne, €16-47/tonne) when settlements were reached.
A buyer and producer said the rollover was more likely, but no settlements had been heard in the market.
Buyers were pushing for the lower prices because of falling barge acetone prices. Barge acetone prices have dropped by 10.25 cents/lb during the second quarter, but MMA contract prices have fallen by just 5 cents/lb.
However, with the supply-demand balance continuing to favour producers, rollovers have been generally accepted.
Demand for MMA from the plastics and sheet market is strong, sources said, with buyers looking for as much material as possible.
Supply of MMA remains tight, sources said, and most customers are on allocation and are expected to remain so until additional capacity is brought online.
No production issues were reported in the market, keeping supply stable but at tight levels.
Feedstocks
With the July barge acetone contract price recently settled at a drop of 4.5 cents/lb, sources were waiting until the middle of the month to start negotiations, and were waiting to see where spot prices for refinery-grade propylene (RGP) trended during August.
The US ammonia spot price was $560/tonnes CFR Tampa.
US methanol prices were 123-124 cents/gal, up from 118-120 cents/gal a week earlier.
($1 = €0.71)
This week on ICIS ( www.icis.com ):
05/08/2011 15:53 Braskem to explore US propylene supply options
05/08/2011 14:43 US employment improved in July with 117,000 new jobs added
04/08/2011 21:11 US August cumene prices increase by 5% on higher feedstocks
04/08/2011 18:52 US weekly chemical railcar traffic rises 4.9% year on year
04/08/2011 17:12 INSIGHT: Negative numbers raise renewed recession risks in US
