Global MMA supply seen tight through 2007

06 December 2006 16:55  [Source: ICIS news]

HOUSTON (ICIS news)--The tight global market for methyl methacrylate (MMA) will likely persist until the end of 2007, industry participants said on Wednesday.

Producers, traders and consumers agreed that the global MMA market was exceptionally tight, with buyers saying it has never been this difficult to obtain material.

Shutdowns at Europe and Asia MMA plants combined with strong downstream demand caused the tightness, a seller said.

While some of the downed plants are beginning to come back on line, buyers and sellers said the tightness will continue as no major MMA plants are scheduled for start-up in Asia until 2008 none at all are expected in the US

Growth in the downstream polymethyl methacrylate (PMMA) polymer was also fuelling fears of tight supply, a buyer said.

MMA prices were firm globally at the end of 2006, according to global chemical market intelligence service ICIS pricing.

US fourth-quarter contract prices settled up on average 5 cents from the third quarter. Europe fourth-quarter contract prices were assessed at an increase of €120-160/tonne.

In Asia, several producers stood by price hikes of $50/tonne for December.

US MMA sellers include Lucite, CYRO and Rohm and Haas.

By: Heather McGuire Doyle
+1 713 525 2653

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