MMA sellers again revise Q3 hikes on feeds

07 July 2008 18:55  [Source: ICIS news]

HOUSTON (ICIS news)--Exceptional increases for feedstock acetone costs have driven more US methyl methacrylate (MMA) producers to raise their third-quarter price initiatives, buyers said on Monday.

Evonik invoked its 5 cent/lb ($110/tonne, €70/tonne) temporary voluntary allowance (TVA), making its third-quarter hike now 17 cents/lb, buyers said.

This follows Lucite's decision to invoke its 5 cent/lb TVA effective 1 July to offset a portion of the raw material and energy cost escalations. The removal of the TVA brought Lucite’s hike to 15 cents/lb.

Arkema also revised its nomination from 8 cents/lb to 15 cents/lb.

The double-digit increases were a result of the Q2 barge acetone price which fully settled at plus 6 cents/lb to 53.5 cents/lb, according to data from global chemical market intelligence service ICIS pricing.

Buyers said the third-quarter MMA negotiations would likely drag on as double-digit hikes could not be absorbed downstream.

Second-quarter MMA was priced at 95-97 cents/lb in railcars.

($1=€0.64)

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