LONDON (ICIS)--European methyl methacrylate (MMA) prices are expected to rise strongly again in July and the third quarter, market sources said on Friday.
The price hikes come against a backdrop of tight availability, with sales controls still in place at Lucite International, and likely to be so until October, according to a company source.
“For the moment we have difficulty with availability. I could sell more than I have,” said one distributor.
“It is not the market we anticipated. It is usually tight in the summer... Now it is very tight globally. Europe is normally a net import region,” said one producer.
Some producers said they were targeting around a €70/tonne increase on Q3 contracts and €30-40/tonne on July prices. However, negotiations are ongoing as buyers resist increases.
“I’m not sure we will agree. It’s too early to settle at this price, after one week, raw material and monomer prices will be more settled,” said a buyer.
“Maybe 70 [€/tonne] will be a bit high. Monthly producers want 30-40 [€/tonne]. The market will probably settle for 20 [€/tonne],” said a second buyer.