LONDON (ICIS)--Second-quarter Europe methyl methacrylate (MMA) contract negotiations are ongoing and settlements have been delayed because of holidays across Europe and as some focus has turned to securing material, sources said on Friday.
Supply concerns have arisen because of the force majeure declaration on MMA by major producer Lucite International.
The 200,000 tonne/year MMA supplier declared force majeure on 24 April, because of a lack of feedstock at its Cassel, UK, plant, and its customers have been placed on allocation, the company confirmed.
Producers have been targeting price increases for Q2, on margin recovery and on expectations of a firming supply/demand balance in what is typically a healthier demand quarter, while buyers have been aiming to limit hikes or roll prices over on steady demand, in what has – until recently – been a balanced market, and as prices are higher than they were at the same time last year, despite demand being largely on the same level.
Players along the supply chain said the market had tightened and that securing material could become a concern if the force majeure is in place for some weeks.
Contract price discussions are expected to continue for at least another week.
Follow Helena Strathearn on Twitter