Editor Julia Meehan, julia.meehan@icis.com

 NOTE: For full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Reports were still mixed as to whether the price of polymethyl methacrylate (PMMA) had firmed for first quarter contracts or if they had rolled over from the fourth quarter.

It was reported in some sectors that suppliers had favoured volume over price and that this had prevented contract prices from firming this quarter.

Demand had got off to a slow start, but was now showing signs of picking up, reported one source. It added that it was seeing improved demand across the board and could not isolate it to one particular end-user market.

Strong demand in Asia and the strength of the US dollar was preventing a flood of imports heading to the region, said one distributor.  The re-seller said that price negotiations with its suppliers were proving very tough and that suppliers were seeking hikes of €100-120/tonne with immediate effect.

Upstream in the methyl methacrylate (MMA) market, producers said that it was essential to increase the value of MMA for monthly and quarterly contract because of higher feedstock costs.

Indeed, Evonik announced in a press release dated 19 February that it would be increasing its MMA price by €140/tonne, effective 1 March or as contracts would allow.

Following the announcement, a second European MMA producer said that it would target an increase of €150/tonne, also effective 1 March or as contracts would allow. The producer source said that it was essential to restore margins to more workable levels. The producer felt that the European market was balanced and said that its demand was as expected. However, looking ahead to March and the second quarter, customers forecast were healthy, the producer added.

A third producer said that it would be pushing for at least €100/tonne from 1 March. The seller described the first three months of the year as a damaging quarter because of successive price increases upstream and little movement in the value of MMA. Demand was feeling better, but it was still far from booming the producer added.

On the buying side, sources said that the success of any price initiative would depend on demand, although they were aware of rising feedstock and production costs.

Further upstream, propylene price developments and feedstock constraints resulting in acetone availability issues were the main focus of discussion in this week’s acetone market. The March propylene contract settled at €910/tonne FD NWE, up by €35/tonne, the fourth consecutive monthly increase.

Although not widely expressed, a producer of acetone hinted that it would be pushing to recover the full propylene increase, with its acetone methyl methacrylate (MMA) contract partners. This did not surprise a major acetone MMA buyer.

Production issues, problems with the supply of cumene and propylene and strong demand for export were all contributing to a lack of European acetone availability, which in turn was impacting on spot prices which firmed by €30-35/tonne this week.

Methanol spot prices edged higher in Europe this week, supported by news that Mider Helm’s 660,000 tonne/year plant at Leuna, Germany, would likely be out until mid-March at the earliest. The increases were modest, however, and sources were divided over the extent to which the market would be affected. Deals for March and April were heard at €212-218/tonne FOB Rotterdam, up from €205-212/tonne last week.

($1 = €0.74)

This week on ICIS news ( www.icis.com):

26-Feb-10 09:54 Japan's Asahi Kasei to shut MMA plant in mid-March on feedstock

25-Feb-10 14:51 Europe acetone spot prices set to firm on tight availability

24-Feb-10 10:42 Domo declares force majeure on Europe caprolactam