Japan’s MRC hikes MMA offers by $300/tonne from 1 May

04 May 2010 06:31  [Source: ICIS news]

SINGAPORE (ICIS news)--Japan’s Mitsubishi Rayon Co (MRC) has raised its methyl methacrylate (MMA) offer by $300/tonne (€228/tonne) for overseas customers starting 1 May due to tight supply and low inventories, said a company official on Tuesday.

For local clients in Japan, the company suggested a yen (Y) 25/kg ($264/tonne) increase, the official said.

MRC had raised its MMA offer price to $2,300/tonne CFR (cost and freight) NE (northeast) Asia for orders of more than 500 tonnes, the source said.

Volumes of 500 tonnes and below for May delivery were being offered at $2,400-2,450/tonne CFR NE Asia last Friday, he added.

MRC is the leading MMA producer in Asia, cornering 38% of the regional market.

The MRC official said that the company’s price hike was “justifiable” given extreme tightness in supply of the material.

Asian MMA prices jumped $30-40/tonne week on week last Friday to $2,080-2,040/tonne SE Asia for cargoes more than 500 tonnes and to $2,150-2,080 for cargoes up to 500 tonnes, based on ICIS pricing data.

MRC had said earlier on that MMA inventory in Japan was very low – estimated at just 15,000 tonnes last month, due to a spate of plant turnarounds and outages in Asia.

Buyers, however, may strongly resist the magnitude of the proposed price increase, market sources said.

“There had been many similar announcements by MRC before. This price increase might be achievable only for small customers,” said an industry source.

“For big customers, the actual price increase may only be $100 in the end," he added.

($1 = €0.76 ; $1 = Y94.6)

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By: Junie Lin

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