BERLIN (ICIS)--European methyl methacrylate (MMA) prices are expected to remain at a higher level once the market rebalances, players said on the sidelines of the 51st annual European Petrochemical Association (EPCA) meeting.
Supply in the market is currently short, and the current high prices level was not seen a sustainable long term by players on both sides of the market.However, prices at the €1,300/tonne level seen back in 2016 are not expected again, the buyers and sellers questioned said
It has been an unprecedented year globally for MMA, in a market that has been crippled by extreme shortage.
Payers attributed the many production problems in part to a lack of investment and maintenance at the plants, when prices were on a downward trend.
Some said that the supply constraints are dampening the growth in the market, because of the backlog of orders and also some moving to other products for supply security.
A number of MMA market participants expected supply to remain tight until mid-2018, with little relief expected this year.
Volumes from the new capacity in the Middle East are expected to start arriving in the market two months from now.
ICIS pricing made a one-time non market adjustment to the Europe MMA quarterly and monthly contract prices on 10 February, 2017. The adjustment should not be interpreted as a market price change.
The annual EPCA meeting runs from 30 September to 3 October.
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