25 September 2013 15:38 [Source: ICIS news]
LONDON (ICIS)--Europe methyl methacrylate (MMA) producer Lucite International is targeting a €75/tonne ($101/tonne) price increase in fourth-quarter contracts because of ongoing feedstock cost pressure and a tightening supply/demand balance, a company source said on Wednesday.
“Feedstocks are a concern,” the source said. “And we're seeing a real progressive tightening in the supply demand balance. We saw price rises through the third quarter, which we need to recover, and there is ongoing concern for feedstock costs through Q4.”
The producer spoke of limited availability in Asia and rising cost pressure globally.
“There is very little in the way of imports,” it added. “Demand is still okay for this time of year, so inventories are at a very low level.”
The supplier said August demand had been good and said September offtake is slightly above levels seen in the same month in 2012.
European third-quarter MMA contract prices rose on tighter supply and steady demand.
The targeted price increase is effective from 1 October, the source said.
Lucite International’s parent company, Mitsubishi Rayon Co, is a division of the Mitsubishi Chemical Holdings Corporation.
($1 = €0.74)
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