MMA Methyl methacrylate

08 January 2001 00:00  [Source: ICB]

New projects from AtoFina/Rohm and Haas, Ineos Acrylics and Mitsubishi Rayon among others have been prompted by predictions that by 2002 the MMA market will be deficient in materialUpdated from product profile, ECN 12 April 1999

Uses

Acrylic sheeting from moulding or extruding polymethyl methacrylate (PMMA) is the largest application for MMA. PMMA resins are used to make products that require good optical clarity and stability such as car tail lights and outdoor lighting. The next largest derivative is protective coatings, particularly emulsion polymers for architectural and maintenance paints. Methyl methacrylate-butadiene-styrene (MBS) resins are used as an impact modifier for clear rigid PVC. New and growing applications in Asia are transparent ABS resins used in computer casings and mobile phones which use a compound of 50% ABS:50% MMA, and thin film transistors (TFT) used in LCD screens.

Supply/demand

The recovery in global demand for MMA has boosted growth in 2000 and capacity utilisation rates have been high. Supply has been tight in the US and in Europe, which is expected to register double digit demand growth in 2000. Röhm's Monacril subsidiary closed its 25 000 tonne/year plant in Huelva, Spain, at end July last year. Asian markets have also been very robust with very tight supply in quarter four because of plant shutdowns. Improved Asian demand has prompted the resumption of European exports and the region has also been very attractive to European suppliers because of the euro's weakness.

Pricing

European prices were reported in the range DM2.63-2.75/kg (an average E1350/tonne) in December. Sources say prices have risen by 35-40% during 2000 because of rising feedstock costs. Margins are much better but still need improving, say suppliers. Price hikes have been announced for early 2001. US tank truck prices were an average 57 cent/lb in December and Asian December spot levels were in the range $1320-1370/tonne cfr SE Asia.

Technology

Currently 80% of worldwide production uses the acetone cyanohydrin route where acetone and hydrogen cyanide are reacted to produce acetone cyanohydrin. This is converted by sulphuric acid to methacrylamide sulphate which is then treated with a methanol/water mixture and heated to form MMA and ammonium bisulphate. Because of problems in disposing of the bisulphate waste and handling hydrogen cyanide, much research has been directed in finding alternative routes. New technologies have been developed by Mitsubishi Gas, a consortium of Eastman Chemical, Bechtel and the Research Triangle Institute and Shell (rights now owned by Ineos). Ineos is building a pilot plant in the UK to trial the new 'Alpha' ethylene-based process with startup expected mid- 2001. Other production uses the C4 process in which isobutylene is oxidised to methacrolein followed by further oxidation and esterification to MMA.

Health and safety

MMA is a colourless, volatile, flammable liquid with an ester-like odour. It will polymerise at high temperatures and its heavy vapour can roll long distances resulting in flashbacks. Carbon monoxide is produced on burning. It is soluble in most organic solvents and slightly soluble in water. Vapour is irritating to the eyes, nose and throat and over-exposure can lead to headaches, drowsiness and nausea.

OUTLOOK

Global demand is predicted by Tecnon (UK) consultancy to grow at 3.2%/year during 1998-2008. Based on current capacity worldwide, the market will be deficient in material by 2002 and this has prompted several new projects. AtoFina and Rohm and Haas will expand capacity at Deer Park, Texas, by 115 000 tonne/year in 2002. Ineos Acrylics will raise production at Beaumont, Texas, by 22 500 tonne/year and is also stretching capacity at Billingham, UK, to 200 000 tonne/year by end 2001. Mitsubishi Rayon is studying new plants and a 100 000-150 000 tonne/year facility will be built in Texas for 2003-04 with an additional plant under consideration in Asia for 2005. Asahi Chemical Industry and Tasco Chemical are studying a 60 000 tonne/year plant in Kaoshiung, Taiwan, which could start up in 2003. Cyro Industries is studying a capacity expansion. Tecnon (UK) forecasts operating rates to fall to a low of about 80% by 2004, pressuring pricing and eroding margins, but climbing back to 90% in 2008.

MAJOR EUROPEAN AND US MMA CAPACITY,
'000 TONNE/YEAR

Company	Location	Capacity
Europe
AtoFina	Carling, France	90
	Rho, Italy	90
BASF	Ludwigshafen, Germany	36
Ineos Acrylics	Billingham, UK	180
Nitron	Saratov, Russia	30
Röhm	Wesseling, Germany	90
	Worms, Germany	190
Repsol	Tarragona, Spain	45
US
Ineos Acrylics	Beaumont, TX, US	160
	Memphis, TN, US	165
Cyro Industries	Avondale, LA, US	125
Rohm and	Deer Park, TX, US	360
Haas

Source: ECN

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