03 December 2010 16:45 [Source: ICIS news]
LONDON (ICIS)--European methyl methacrylate (MMA) spot prices have fallen by €50-100/tonne ($66-132/tonne), due to slightly softened demand as the end of the year approaches, market participants said on Friday.
“Spot is now trading at €2,250-2,400/tonne,” a trader said. “The intention is to have a price to bring the product to the buyers.”
The new spot range was assessed on a free delivered (FD) northwest Europe (NWE) basis.
“Some people are still looking for material for December and we have lots of orders already for January. Demand next year will be strong,” the trader said.
“But at the moment, we are concentrating more on buying volumes to prepare for next year’s requirements,” the trader added.
Previously reported prices of €3,000/tonne were far above the current levels in the market.
The price of Brazilian and Russian material available for trade on the free market was reverting to more realistic values, sources said. However, it was thought spot values could go up again in 2011.
There are expectations that first-quarter contract prices would rise, and sources said it was likely spot values would follow this trend, but on a smaller scale.
The spot range had gradually increased through August under extremely tight market conditions and then rose a further €200/tonne in early October following a number of offers heard at €3,000/tonne FD NWE.
Fourth-quarter contract prices moved up €130-150/tonne to a pre-discounted contract price of €1,860-1,935/tonne FD NWE, following another quarter of extremely limited availability and strong demand.
MMA is polymerised to form polymethyl methacrylate (PMMA), lubricant viscosity modifiers, emulsions and coatings.
($1 = €0.76)
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