PODCAST: Europe MMA stirs as low gas prices reawaken petrochemicals

BARCELONA (ICIS)–Europe methyl methacrylate (MMA) production is on the cusp of restarting as lower gas prices breathe life back into region’s petrochemical sector.

• Roehm and Trinseo slowly increasing MMA run rates, but not to full capacity
• Europe MMA costs hurt by high propylene, acetone feedstock prices
• Flood of cheap imports from Asia undermines Europe production
• Freight rates have normalised, product can flow freely from Asia
• Netbacks from Asia to Europe have collapsed to long-term average
• UK Mitsubishi MMA plant may shut down permanently
• Mixed picture on MMA demand in Europe
• Concerns over long term viability of Europe MMA production
• 20m tonnes/year of excess polyethylene (PE) capacity globally
• Several new cracker projects underway despite overcapacity

In this Think Tank podcast, Will Beacham interviews ICIS markets editor for MMA Mathew Jolin-Beech, Insight Editor Nigel Davis, and ICIS Senior Consultant Asia John Richardson.

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

ICIS is organising regular updates to help the industry understand current market trends. Register here.

Read the latest issue of ICIS Chemical Business.

Read Paul Hodges’ and John Richardson’s ICIS blogs.