04 May 2012 06:33 [Source: ICIS news]
By Junie Lin
BRISBANE (ICIS)--China’s general purpose (GP) polymethyl methylacrylate (PMMA) producers are unlikely to implement price hikes for May successfully because of weak market fundamentals, despite rising feedstock methyl methacrylate (MMA) costs, market players said on Friday.
Most of the producers said they are trying to implement hikes of $50-100/tonne (€38-76/tonne) for May, which they added are necessary to recover their squeezed margins
Some May GP PMMA offers were at $2,550-2,650/tonne CIF (cost, insurance & freight) China, up by $50-100/tonne month on month. Other producers said they are open to discussions at above $2,400/tonne CFR SE Asia.
GP PMMA prices were assessed as unchanged week on week at $2,410-2,550/tonne CFR (cost & freight) China in the week ended 3 May, according to ICIS data.
Upstream bulk MMA prices for cargoes of more than 500 tonnes have increased by $150-160/tonne, or more than 7%, since early February to $2,220-2,280/tonne CFR southeast (SE) Asia in the week ended 27 April, according to ICIS.
“End-users in south
An import supply surplus has also hampered many producers’ efforts to hike their prices, he added.
The impetus to implement the May price hikes of $50-100/tonne has decreased in view of the supply glut following the dumping of South Korean GP PMMA cargoes, some producers said.
Around 3,000 tonnes of South Korean cargoes were dumped in
The cargoes were heard dumped at close to feedstock MMA prices, but this could not be confirmed, they added
“The 3,000 tonnes account for more than 10% of
Meanwhile, discussions were hampered partially because of the Labour Day holiday in
Producers faced difficulties offloading the excess PMMA supply because of the holiday and thus the shorter working month in May, which contributed to the difficulty in implementing the price hikes, said traders.
Chinese GP PMMA domestic prices remained unchanged week on week at yuan (CNY) 18,000-19,000/tonne ($2,857-2,016/tonne)
MMA is polymerised to make homopolymers and copolymers, with the largest application being the casting, moulding or extrusion of PMMA or modified polymers.
GP PMMA is used to make household products, such as cosmetics bottles, and its automotive applications include tail-lights and speedometre covers.
($1 = €0.76)
($1 = CNY6.30)
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