26 October 2011 11:48 [Source: ICIS news]
SINGAPORE (ICIS)--The ?xml:namespace>
Methyl-A was assessed by ICIS at $1,950-2,000/tonne CIF (cost insurance and freight) CMP (China Main Port) to reflect prevailing offers by regional producers.
The price was previously at this level on 6 October last year when it was assessed at $1,920-2,010/tonne.
High inventory levels coupled with weak demand throughout northeast
One regional producer reported that it could offer spot methyl-A cargoes at $2,000/tonne, down a sharp $150-160/tonne from its offers in September.
“Demand from the downstream MMA sector is so weak, as MMA producers are grappling with high inventories. We have not sold a single MA [methyl-A] cargo in October as there are no requirements,” said the producer.
A second northeast Asian producer shared a similar view.
“MA [methyl-A] demand typically picks up early in the fourth quarter, which is the peak production season for the automotive and construction sector. But this year, the situation is terrible. Both sectors are suffering badly,” said the second regional producer.
Meanwhile, the country’s automotive sector is affected by slower demand from the debt-ridden eurozone, Chinese traders added.
In southeast Asia, both the construction and automotive sector were badly affected by widespread flooding.
Thai Honda Manufacturing Co (Thai Honda), Honda's motorcycle and power products production subsidiary in
The automotive industry is an important sector for MMA production, where downstream MMA products like polymethyl methacrylate (PMMA) are used in applications, such as tail lights and speedometers.
A southeast Asian trader predicts that Asian producers will be forced to slash production rates moving into the fourth quarter.
“This is the inevitable scenario as MA [methyl-A] stockpile levels have to be controlled,” said the trader.
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