22 July 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European methyl methacrylate (MMA) third-quarter contracts settled this week at an increase of €30/tonne ($43/tonne) from the previous quarter, because of limited availability, buyers and sellers said on Friday.
The freely negotiated range has been assessed at €1,990-2,130/tonne, on a free delivered (FD) northwest Europe (NWE) basis.
A few contracts settled at a rollover to increases of plus €20/tonne, while an equally small portion of the market incurred €50/tonne hikes for the quarter. Most agreements were concluded at increases of €30-40/tonne, with the majority settling at the lower end of this range.
“We have concluded all of our contracts,” a major producer said. “A large majority have settled at increases of €30-40/tonne, some less than that.”
A large buyer said: “We have settled our third-quarter contracts with some rollovers and some increases up to €20/tonne.”
Despite improved availability, softened demand, a €64/tonne drop in the July feedstock acetone price, and lower spot values, sellers have largely been able to secure increases as the market remains balanced to tight.
Monthly contracts for July are valued at €2,280-2,420/tonne FD NWE. Price movements from June varied from a rollover to increases of up to €50/tonne.
One seller said the low end of its monthly contracts had increased by €90/tonne since April.
The MMA spot price has moved down by €50/tonne this week to €2,150-2,350/tonne FD NWE, with most business taking place at €2,200/tonne FD. Offers at €2,000/tonne are available for material from Asia and the US, but some sellers believe values above the published range are achievable.
Demand remains healthy although levels have dipped, as is usual for the summer season. Availability is good and buyers are able to obtain required volumes. However, supply limitations are likely once demand picks up, as is expected in September.
MMA is an organic compound. This colourless liquid, the methyl ester of methacrylic acid (MAA), is a monomer produced on a large scale for the production of polymethyl methacrylate (PMMA).
($1 = €0.70)
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