17 September 2009 11:38 [Source: ICIS news]
LONDON (ICIS news)--European polymethyl methacrylate (PMMA) producers are seeking increases of €0.10/kg ($0.07/kg) or more for fourth-quarter contracts because of rising MMA prices, major PMMA suppliers said on Thursday.
“Raw material prices went up and demand is much better than the first half of the year, so they [prices] need to go up,” said a source at Evonik. “Customers understand the increase in raw materials,” the source added.
A second producer source said: “We have no choice on price because of raw materials. We will not be making a broad announcement but the increase will be treble digits and over €100/tonne (€0.10/kg).” The producer also said that its demand for sheets was “picking up for sure” compared with previous months.
“We saw the bottom in May and demand has gone up with the exception of August,” the producer said. “We are getting lots of enquiries from the communication and boarding sector, as well as sanitary ware.”
The third-quarter pre-discounted PMMA contract price rolled over at €2.55-2.70/tonne FD (free delivered) NWE (northwest ?xml:namespace>
A third European PMMA producer said that margins were being squeezed because of increasing raw material costs.
“We are deciding when, rather than if, we go for increase,” the producer said.
The fourth-quarter price intentions of European PMMA producers followed an announcement by global major Lucite that it would be seeking a €120/tonne increase for fourth-quarter methyl methacrylate (MMA) contracts.
“There are two main reasons for the increase. The first is that the supply/demand balance [of MMA] is very tight at the moment and the second is cost based,” confirmed a Lucite source.
The third-quarter MMA contract price settled at €1,280-1,335/tonne FD NWE, up €55/tonne from the second quarter, while feedstock acetone prices rose each month during the quarter by a total of €163/tonne on the back of propylene.
($1 = €0.68)
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