Evonik to put sales controls on US April MMA after plant problems

09 April 2012 21:28  [Source: ICIS news]

HOUSTON (ICIS)--Issues at a US plant forced methyl methacrylate (MMA) producer Evonik to put sales controls on product, sources said on Monday, citing a letter to customers.

The letter states that “no further orders can be accepted for April shipment” because of challenges at the company’s 150,000 tonne/year Fortier MMA plant in Louisiana.

Also, the company said it is increasing its lead times on material and cutting back on bulk truck payloads for April.

A company spokesperson said “the letter speaks for itself”.

Sources said Evonik is continuing to work on increasing its capacity out of the facility, as MMA demand is expected to increase, especially into South America.

In February, market players said the company attempted to source several thousand tonnes of MMA to fill contractual obligations because of difficulties at the plant.

Buyers said they had no issues receiving material during that time.

Currently, March MMA is assessed by ICIS at $1.20/lb-1.30/lb ($2,646-2,866/tonne, €2,011-2,178/tonne) FD (free delivered) railcar.

($1 = €0.76)

By: John Dietrich

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