US August MMA contract prices assessed lower from July

10 August 2012 21:13  [Source: ICIS news]

HOUSTON (ICIS)--US August contract prices for methyl methacrylate (MMA) were assessed slightly lower on Friday as market sources confirmed most business was being done in a new range.

US August MMA contract prices were assessed at $1.10-1.15/lb ($2,425-2,535/tonne, €1,964-2,053/tonne) FD (free delivered).

July MMA prices were assessed at $1.11-1.17/lb FD, according to ICIS Pricing.

One major MMA producer said most of its August contracts would be settled at a rollover.

Buyers from the other producer said they were able to lower their prices by 1-2 cents/lb from July.

“There was lower demand throughout the month,” a buyer said. “And with feedstocks not moving much, prices came down.”

The key feedstock for August MMA, the July barge acetone contract price, gained only 0.5 cents/lb month on month.

Additionally, US ammonia, methanol and natural gas prices were also largely steady.

On the demand side, sources said the coatings market has been steady, with sales still stronger year on year on a year-to-date basis.

However, demand from the plastics market in the cast sheet and electronics segments has started to slip, sources said.

“Supply has also been good,” a buyer said. “And even if there were some hiccoughs, demand isn’t strong enough for that to make a big difference.”

Major US MMA producers include Dow Chemical, Evonik and Lucite.

($1 = €0.81)

By: John Dietrich

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