LONDON (ICIS)--Second-quarter European polymethyl methacrylate (PMMA) contract price negotiations are ongoing, with discussions delayed by holidays across parts of Europe and as talk has turned to supply concerns, sources said on Tuesday.
“The quarter is still open,” a distributor said.
Players are ensuring Q2 volumes are secured, following news that Lucite International has had to impose strict sales controls on PMMA, on the back of the force majeure declaration on feedstock methyl methacrylate (MMA) at the 200,000 tonne/year Cassel, UK site, on 24 April.
The producer said it was not able to sell any spot PMMA volumes, nor fulfil any orders above forecast.
PMMA producers are seeking price rises to regain margin. A number of standard grade resins contracts are yet to be concluded, while the majority of sheets contracts have now been agreed.
Initial producer targets ranged from €80-160/tonne over Q1 contract prices, on the back of higher feedstock and energy costs and improving demand.
Buyers said demand was largely steady or slightly improved from that seen in the first quarter.
A buyer said: “There have been some slight signs on the European market for recovery, but not strong enough to carry through expectations of producers.”
“Our focus is managing continuity of supply,” a producer said.
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