Product profile: Methyl methacrylate

11 November 2002 00:00  [Source: ICB]

World demand has improved this year especially in Asia. Growth rates are strong but some investment plans have been put back because of poor profitability in recent years

Uses

The largest use for methyl methacrylate (MMA) is in polymethyl methacrylate (PMMA) which is used as a substitute for glass in products such as car tail lights and lighting fixtures because of its good optical clarity, weather-resistance and light weight. A major application is in surface 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 and in food and pharmaceutical packaging. MMA can partially replace styrene in unsaturated polyester resins to give better weather resistance and longer life.

Supply/demand

Global consumption is estimated at 2.1m tonne for 2002 with operating capacity put at 2.3m tonne. World demand has recovered this year. In Europe, demand is tipped to be up 3-4% on 2001 and a slight increase is expected for the US. Asia has seen particularly strong consumption this year, but current growth estimates vary widely from 8-9% up to as much as 15%.

The improved demand has combined with several unplanned plant outages during 2002 to tighten global supply. In addition, some producers have been impacted by shortages of acetone and hydrogen cyanide (HCN) feedstocks. Players expect markets will remain tight until well into 2003. Ineos Acrylics has changed its name to Lucite International ahead of a future flotation/initial public offering.

Pricing

European producers have achieved strong price hikes of about E140/tonne in both the third and fourth quarters on the back of tight supply and high feedstock costs. Quarter four contracts are at about E1325/tonne FD NWE for small to medium buyers with lower numbers of E1200-1250/tonne heard for large customers.

Technology

About 80% of world capacity is based on acetone cyanohydrin where acetone and HCN are reacted to produce acetone cyanohydrin. This is converted to methacrylamide sulphate which is treated with a methanol/water mixture and heated to form MMA and ammonium bisulphate.

Because of the problems in disposal of the bisulphate waste and handling HCN, much research has been devoted to alternative routes and several are near commercialisation. The new processes range from using new feedstocks such as isobutene, ethylene or methylacetylene to techniques for recycling the HCN and/or ammonium bisulphate.

Health and safety

MMA is a clear, colourless liquid with an ester-like odour. It is volatile and highly flammable and its heavy vapour can roll long distances and flash back. It will polymerise at high temperatures. The vapour is irritating to the eyes, nose and throat and skin contact can lead to sensitivity.

Outlook

World demand growth is put at 3-5%/year. The strongest growth of about 5%/year is in Asia driven mainly by growing use in thin film transistors used in LCD screens. Europe will see demand growth at GDP rates.

Poor markets have delayed some investment plans most of which are targeted for Asia. Asahi Kasei is expanding by 30 000 tonne/year at Kawasaki by end 2002, and LG will start up a 50 000 tonne/year unit in May 2003. However, Asahi has suspended its joint venture in Taiwan with Tasco Chemical and Sumitomo's 70 000 tonne/year project in Singapore has been pushed back to 2005. In China, Lucite plans a 90 000 tonne/year plant for 2005, and Kuraray is studying a 100 000 tonne/year facility.

In the US, Rohm and Haas has delayed its 115 000 tonne/year expansion at Deer Park to late 2003/early 2004. Lucite plans a 100 000 tonne/year plant for 2006 based on its new Alpha ethylene-based process.

Major global MMA capacity, '000 tonne/year

Company	Location	Capacity
Europe
Atofina	Carling, France	90
	Rho, Italy	90
BASF	Ludwigshafen, Germany	36
Lucite	Billingham, UK	200
Repsol YPF	Tarragona, Spain	45
Rohm	Wesseling, Germany	90
	Worms, Germany	190
Saratovorgsintez	Saratov, Russia	30
Americas
Metacril	Candeias, Brazil	13.5
Cyro Industries	Fortier, Louisiana, US	132
Lucite	Beaumont, Texas, US	160
	Memphis, Tennessee, US	165
Rohm and Haas	Deer Park, Texas, US*	360
Asia
Asahi Kasei	Kawasaki, Japan	70
Formosa Plastics	Mailiao, Taiwan	70
Honam Petrochemical	Yosu, South Korea	40
Kaohsiung Monomer	Kaohsiung, Taiwan	100
Kuraray	Nakajo, Japan	70
Kyodo Monomer	Takaishi, Japan	40
LG MMA	Yosu, South Korea	50
Mitsubishi Gas Chemical	Niigata, Japan	50
Mitsubishi Rayon	Ohtake, Japan	215
Nippon Shokubai	Niihama, Japan	80
Singapore MMA Monomer	Pulau Sakra, Singapore	53
Sumitomo Chemical	Niihama, Japan	40
Sumitomo Chemical/ Nippon Shokubai	Himeji, Japan	50
Thai MMA	Mab Ta Phut, Thailand	55
*Atofina takes 80 000 tonne/year output
Source: ECN/CNI

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