Initial Q2 MMA contracts climb in US

17 April 2007 17:07  [Source: ICIS news]

HOUSTON (ICIS news)--Some US sellers of methyl methacrylate (MMA) have achieved initial second-quarter contract price increases of up to 4 cents/lb ($88/tonne), buyers and sellers said on Tuesday.

The price increase was not widely confirmed but manufacturers did agree that prices needed to increase to cover feedstock acetone costs and a tight global market.

First-quarter MMA contract prices settled up 2 cents/lb to 114.5 cents/lb, free delivered (FD), according to global chemical market intelligence service ICIS pricing.

A feedstock acetone settlement was reached for US barge contracts that put first-quarter contract prices up 2 cents at 42.5 cents/lb. The price was settled the final day of the quarter following negotiations since December.

US MMA suppliers said that the strongest global demand was coming from Asia, due to an ever-growing downstream LCD market amid maintenance outages scheduled at large-scale plants in Japan, South Korea and Taiwan.

“The US is meeting Asia needs as best as possible, but we still get requests we cannot fulfil,” a US producer said.

There was mixed sentiment on the US supply and demand balance. Most MMA sellers said global demand, especially from Asia, had gradually tightened supplies. However, some consumers said the domestic tightness was exaggerated.

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

By: Heather McGuire Doyle
+1 713 525 2653

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