US November MMA prices escalate, but fall short of targets

HOUSTON (ICIS)–US methyl methacrylate (MMA) free-market contract prices increased by an average of 5 cents/lb ($110/tonne) for November, sources confirmed on Tuesday, but that average gain fell below targeted levels.

The increase took MMA railcar prices to 137.50-141.50 cents/lb, as assessed by ICIS.

November MMA contracts had been proposed higher by 7 cents/lb, with some customers paying more or less than the assessed increase. Some customers had vowed to limit gains to 3-4 cents/lb.

Upstream refinery-grade propylene (RGP) was the primary impetus for the November initiatives, although the feedstock has continued to soften through late October and most of November.

In the feedstock barge acetone market, initial November settlements appeared to be settling sharply lower than in October, accounting for some of the loss of momentum behind the November MMA initiatives.

In downstream markets, the American Institute of Architects’ (AIA) index of future US construction activity slipped marginally in October from a more robust September, but remains in solid positive territory, the organization said this week. The AIA’s Architectural Billings Index (ABI) softened to 53.7, down by 2.7% from September’s 55.2 for September, but any score above 50 indicates growing demand for architectural services.

In related news, October mortgage applications for new-home purchases increased by 8% versus September, according to data from the Mortgage Bankers Association (MBA) Builder Application Survey (BAS).

Conventional loans accounted for about 68% of loan applications, and the average loan size of new homes increased to $300,289 in October from $298,274 in September, the data revealed. The MBA data indicated that the increase stemmed from continued improvement in the job market and low mortgage rates supporting more affluent buyers, while tight credit is still constraining entry-level sales.

Major US MMA producers include Lucite, Evonik, Dow Chemical and Arkema.