Asia PMMA may extend gains on spot supply constraints

SINGAPORE (ICIS)–Asia-Pacific spot prices of polymethyl methacrylate (PMMA) are poised to see potential upside on the back of spot supply limitations, while taking cues from firmer upstream sectors, market players said on Tuesday.

As of 23 February, spot PMMA prices averaged at $2,160/tonne CFR (cost and freight) southeast Asia, stable from the previous week’s close and up from $2,075/tonne CFR southeast Asia a month ago, ICIS data showed.

Negotiations for March GP (general purpose) grade PMMA material are just starting amid an optimistic outlook, as several regional sellers were eyeing firmer asking levels owing to limited supply availability on hand.

This was in part triggered by shortfalls in upstream raw material methyl methacrylate (MMA) in Asia Pacific.

Several regional producers having low inventories, combined with scheduled plant turnarounds during February-March continued to squeeze supply availability of MMA in Asia-Pacific.

The lingering curbed supply scenario may have some influence in generating upward pressure on PMMA going into March, market players said.

Market sentiment was also buoyant on the back of an upcoming partial turnaround affecting a PMMA plant in Singapore, which is expected to further derail production, market players said.

Sumitomo Chemical Singapore will conduct scheduled maintenance at one line at its 150,000 tonne/year PMMA plant in Jurong Island for about three weeks from mid-April, according to sources.

“We have had to control our sales quantity and impose strict [supply] allocation,” said a southeast Asia-based supplier citing low inventories,

A similar relatively upbeat market mood helped to support sentiment, keeping prices of GP-grade PMMA afloat in China.

“The [March] market will be stable at least to firm … because there are limited stocks of MMA also,” a northeast Asia-based market source said.

Spot prices averaged at $2,165/tonne CFR China on 23 February, up from $2,150/tonne CFR China a week earlier. Prices edged up from month-ago levels at $2,075/tonne CFR China, according to ICIS data.

“An uptrend in prices is expected for March with several suppliers having low stockpile,” a separate northeast Asia-based source said.

Top image: Photographer: Neil Godwin/ / Future Publishing/REX/Shutterstock

Focus article by Melanie Wee