06 June 2008 06:31 [Source: ICIS news]
SINGAPORE (ICIS news)--Rising feedstock costs and a balanced-to-tight market have boosted southeast (SE) Asian methyl methacrylate (MMA) prices and producers are now trying to hike prices by $50-100/tonne, said buyers and sellers on Friday.
High costs of feedstocks acetone, methanol and MTBE are resulting in squeezed margins for MMA producers. Most are now trying to increases prices by $50-100/tonne for June business, said regional sellers.
MMA had increased $30-50/tonne in SE Asia, said a regional MMA seller. Prices were currently pegged at $1970-$2040/tonne CFR (cost and freight) for iso-tank business.
"Most buyers understand the raw material situation," said an MMA buyer and maker of transparent ABS. "We are also trying to raise transparent ABS prices as all our feedstocks are going up."
"We have agreed to a $20/tonne increase for June but there is still resistance from the downstream sectors like cast sheets," said another regional buyer.
The balanced-to-tight supply in SE Asia had also supported the price hikes in the region, said buyers and sellers.
Sumitomo Chemical’s 80,000 tonne/year MMA line in Singapore was shut down on 12 March and was expected to restart only towards the end of June, said a company source.
Major MMA producers in Asia include Sumitomo Chemical, Mitsubishi Rayon Company, LG MMA, Lucite and Formosa Plastics.
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