Chemical Profile: Methyl Methacrylate

15 January 2007 00:00  [Source: ICB Americas]

 

 

 

 

 

 

DEMAND

2004: 1.355bn pounds 2005: 1.395bn pounds 2009: 1.57bn pounds, projected. Demand equals production plus imports (2004: 34m pounds 2005: 12m pounds) less exports (2004: 296m pounds 2005: 245m pounds). Sources: ICIS Chemical Business Americas USITC

GROWTH

Historical (2000-2005): 1.3%/year. Future: 3%/year through 2009. Source: ICIS Chemical Business Americas

PRICE

Historical (2000-2005): High, 94 cents/lb., contract, tanks, dlvd. low, 45 cents/lb., same basis. Current: $1.13-1.17/lb., same basis. Source: ICIS pricing

USES

Polymethylmethacrylate (acrylic) resins, 47% (cast and extruded sheet, 31% molding powders and resins, 16%) surface coatings, 22% (latexes, 17% other, 5%) impact modifiers, 13% emulsion polymers, 8% mineral-filled sheet, 8% miscellaneous, 2%. Source: ICIS Chemical Business Americas

MARKET PERSPECTIVE

US consumption of MMA in acrylic sheet, molding and extrusion compounds, and surface coatings is strongly affected by construction and remodeling activity, as well as automobile production. These applications account for approximately 80% of MMA consumption, and demand for these markets is greatly influenced by general economic conditions. US demand for MMA rebounded in 2003 due to increased demand for polymethyl methacrylate (PMMA) from the construction industry, which continues to the present. Home remodeling expenditures increased by 5.8% in 2005 from 2004, according to the National Association of Home Builders (NAHB). A record increase is also forecast for 2006. The association's forecast for 2006 will be the largest increase in spending in more than 10 years, representing, a 13.2 % jump from last year.

On the negative side, the rising use of vinyl siding in home construction has cut into the potential growth of acrylic latex paints, which would have been used for new construction and maintenance in later years.

MMA has been in a tight supply situation this year, with global demand outpacing the healthy US demand growth. MMA has been growing at 4%/year globally and is expected to maintain this growth through 2009. The supply side will remain tight, as no new plants are scheduled to come on line until 2008, and these will be in Europe and Asia. Besides construction and remodeling, Asia's MMA demand is also being pulled by electronic device screens, such as liquid crystal displays for television screens and computer monitors.

Market prices have responded to the higher demand. Prices in 2005 increased 28% over the previous year, and this year so far, prices are up another 16%. Working with the strong demand to elevate prices, feedstocks of acetone and methanol have been sharply higher over the past two years.

OUTLOOK

US demand for MMA is forecast at 3%/year, through 2009. This is somewhat less than global demand growth which should do 4% annually. Resin and sheet demand will be driven by construction and household improvement uses, while surface coatings formulated with MMA will see market pull from architectural and automotive applications. Capacity being built overseas and slated to come on line in 2008 and 2009 could adversely affect US exports, as the global market at that time is expected to become oversupplied.

US MMA CAPACITY, Billions of LBs./year

Company	Location	Capacity
Cyro Industries	Fortier, La.	350
Lucite International	Beaumont, Texas	340
Lucite International	Memphis, Tenn.	340
Rohm and Haas	Deer Park, Texas	790
TOTAL		1,820SOURCE: ICIS Chemical Business Americas

*Millions of pounds per year of methyl methacrylate (MMA). Commercial production is by the reaction of acetone and hydrogen cyanide to form acetone cyanohydrin (ACH), which is further treated with sulfuric acid to produce methacrylamide sulfate. The sulfate is esterified with methanol to produce methyl methacrylate, with ammonium bisulfate as a byproduct. Other routes to MMA, which avoid the use of hydrogen cyanide or sulfuric acid, have been commercialized globally, but the ACH process is used by all three basic US producers.

Lucite International is constructing a new MMA plant of 310m lbs./year at Jurong Island, Singapore, which employs the company's new proprietary technology that is based on ethylene, methanol, and carbon monoxide. Manufacturing costs are said to be lower by 40-45% compared with the traditional acetone route. The project forms part of a manufacturing collaboration between Lucite and Mitsubishi Rayon, under which Mitsubishi Rayon will build an MMA plant plus a mathacrylic acid unit with a combined capacity of 310m lbs./year at an as-yet undecided location in Texas. Lucite and Mitsubishi Rayon will supply each other with MMA from the planned facilities, under terms of their agreement.

Degussa acquired Cytec Industries' 50% stake in Cyro Industries in June 2005, and expanded MMA production at the Cyro site in Fortier, La., by 45m lbs./yr., to a total of 350m lbs. Cyro is now a wholly owned subsidiary of Degussa Corp. The company is also building its first methacrylic acid plant, at the same site, with a capacity of 45m lbs./yr. The unit is slated to come on stream by the first quarter of 2007.

For the latest market prices and reports on more than 120 commodity chemicals from the leading independent pricing and market intelligence service, please visit ICIS pricing at www.icispricing.com

Profile last published March 1, 2004

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