US March MMA contracts move 5.1% higher on improved demand

15 March 2013 20:16  [Source: ICIS news]

US March MMA contracts move 5.1% higher on improved demandHOUSTON (ICIS)--US March methyl methacrylate (MMA) contracts moved 5.1% higher month on month, sources said Friday.

US March MMA contract prices were assessed by ICIS at $1.21-1.25/lb ($2,668-2,756/tonne, €2,054-2,122/tonne) on an FD railcar (free delivery via railcar) basis.

February prices were assessed at $1.15-1.19/lb FD railcar.

Sources said price increases in March were in line with nominations from producers at 5 cents/lb and 7 cents/lb.

“The price increases have been fully implemented,” a producer said. “Prices are above the $1.20/lb level.”

Sources said stronger demand from the coatings market was the primary driver, as production is ramping up ahead of the busy spring and summer seasons.

Most of the demand will be used for residential construction and remodeling, sources said.

Additionally, demand from the plastics sector for acrylic sheets and lights is strong, buyers said.

“Demand is definitely ramping up and is starting to make supply tight,” a buyer said.

Producers added that feedstock costs from the acetone and propylene markets in January and February also pushed up on MMA prices.

US February barge acetone contracts settled 4.5 cents/lb higher but is expected to fall in March on weaker propylene.

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

($1 = €0.77)

By: John Dietrich

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