15 June 2012 09:47 [Source: ICIS news]
By Junie Lin
BRISBANE (ICIS)--Spot prices of general purpose (GP) polymethyl methacrylate (PMMA) in Asia may continue to head south in July after sales slumped in June as most buyers are keeping out of the market, industry sources said on Friday.
In the week ended 14 June, GP PMMA prices were assessed at $2,350-2,450/tonne (€1,880-1,960/tonne) CFR (cost and freight) ?xml:namespace>
PMMA consumption typically peaks at this time through the third quarter as production ramps up, in anticipation of the Christmas season - when exports of Asian-made goods normally spike.
But many end-users in
Some PMMA producers said they are now mulling cutting production because of poor demand.
MMA is polymerised to make homopolymers and copolymers with the largest application being the casting, moulding or extrusion of polymethyl methacrylate (PMMA) or modified polymers.
GP PMMA goes into making of household products such as cosmetics bottles, and its automotive applications include car tail lights and speedometer covers.
Sellers said downstream buyers are understandably cautious, in view of the broader petrochemical market downturn.
“Most buyers are buying in smaller quantities to guard against macroeconomic risks,” one Chinese domestic producer said.
“Other buyers are still saddled with inventories of PMMA or finished products because of poor export sales, and were not keen to purchase PMMA despite the falling prices,” he added.
There were initial hopes at the start of June that high prices of feedstock methyl methacrylate (MMA) could support PMMA values, but oversupply and weak demand weighed heavily on the market. Even MMA prices have come off.
Chinese domestic GP PMMA prices plunged CNY600-700/tonne week on week at CNY17,600-18,500/tonne
Deals were concluded this week at CNY17,600-17,800/tonne
Other discussions of Japanese and South Korean product were at close to CNY18,000/tonne
“Even small parcels can fetch no more than CNY18,500/tonne
($1 = €0.79 / $1 = CNY6.37)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections