Product Profile: MMA

28 June 2004 00:01  [Source: ICB]

Booming Asian markets have boosted demand and global supply has tightened as plants suffer outages and feedstock restrictions. Little investment will provide small relief

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. A major application is in surface coatings, notably 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 markets are tight as strong demand and production problems hit availability. Demand in Europe is good while Asian markets are booming. US demand has firmed and is outpacing supply as acetone shortages restrict output. Several European producers have had operating problems, stocks are very low and some customers are on sales control. Spot business is very limited as material is scarce.

Supply is expected to remain tight worldwide as Asia has a big shutdown programme in the second half of 2004 and no new capacity is due until 2005. The European merchant market is expected to show growth of 6-7% in 2004 over 2003, with Asia tipped at 12-15%. Global markets are said to have grown by 5-10% in 2003 versus 2002.

Pricing

Producers posted increases of €120-160/tonne in quarter two after prices fell in quarter one by up to €40/tonne. Hikes of about €60-80/tonne have been achieved taking the current range to €1440-1485/tonne FD NWE. Suppliers are targeting further increases of €140-160/tonne in quarter three as raw materials look set to rise again. Spot prices are notional at €1200-1250/tonne.

Technology

About 80% of world capacity is based on acetone cyanohydrin. Acetone and hydrogen cyanide (HCN) are reacted to produce acetone cyanohydrin. Sulphuric acid converts the cyanohydrin to methacrylamide sulphate, which is treated with a methanol/water mixture and heated to form MMA and ammonium bisulphate. Some production in Japan is based on isobutylene or tert-butyl alcohol feedstocks.

With problems in disposing of the bisulphate waste and handling HCN, much effort has been devoted to finding alternative routes. Eastman Chemical, Research Triangle Institute and Bechtel have developed a three-step syngas process and Mitsubishi Gas Chemical has commercialised an acetone cyanohydrin route without ammonium sulphate byproduct.

Lucite is ready to commercialise its Alpha process which is based on ethylene, methanol and carbon monoxide. A site decision is due in quarter three. A first plant would become operational by 2008 and a second is planned soon after.

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 flashback. The vapour is irritating to the eyes, nose and throat and skin contact can lead to sensitivity.

Outlook

Global growth is put at 3-5%/year although Asia will see much higher rates as demand into LCD screens boosts MMA needs. Poor returns have limited investment and new capacity next year will provide little relief to the global tightness, say sources.

Lucite’s 100 000 tonne/year plant in Caojing, China, and Sumitomo’s 80 000 tonne/year unit in Singapore will start up in mid-2005. More projects in Asia are being considered by Mitsubishi Rayon, Asahi Kasei, Sumitomo Chemical and others.

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	95
	Worms, Germany	186
Saratovorgsintez	Saratov, Russia	30
Americas
Cyro Industries	Avondale, Louisiana, US	132
Lucite	Beaumont, Texas, US	160
	Memphis, Tennessee, US	165
Proquigel	Candeias, Brazil	37
Rohm & Haas	Deer Park, Texas, US	475
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	100
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	45
Sumitomo Chemical/Nippon Shokubai	Himeji, Japan	50
Thai MMA	Map Ta Phut, Thailand	70
Source: ECN/CNI

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