MMA price in Asia was firmed up US$20~30/mt for August shipment. On the feedstock side, Asian C4 process MMA plant are suffering from the Naphtha cost has been lifted up dramatically over US$ 900/mt. it’s same with ACH process that propylene was higher than US$1,000. Thus, we can see much stronger MMA prices cost push in Asia. On the demand side, even the market sentiment started to weaken from downstream cast sheet and resin, but the major support from PMMA sector is healthy and received orders up to the end of the third quarter. Thus, it’s boosting sellers’ confidence for the MMA price increase. Most MMA orders were settled at US$1,700~1,730 pmt CFR in isotank for August shipment. There are not much bulk orders being reported. The outlook for September will be steady. 

In North Asia, Lucite China has re-started their plant on 15th of July. Market demand was stable although market sentiment started to weaken as China headed to the traditional lull season. Prevailing market price is around RMB 13,500 to RMB 14,000 pmt delivered. Commissioning of Evonik 100,000tonne/year MMA plant will be on schedule at Q4. In Japan, MMA supply in domestic market kept tight. MRC shut its 55,000 tonne/year No.2 C4 based MMA line in Japan from 14 July to 23 July and it’s ACH based 107,000 tonne/year MMA line operated rate at around 70% amid reduced feedstock supply. In Taiwan and Korea, supply remained tight amid strong demand from downstream PMMA sector. In Taiwan, KMC’s ACH base 100,000tonne/year MMA line operated rate at 80~90% because of reduce feedstock from CPC. MMA prices sustain at the level of NT$60 ~ NT$62/kg DDP (US$1,830 ~$1,890 pmt). PMMA price is US$1,850 ~ $1,900 pmt CFR level.

In South Asia, MMA demand kept stable. In Indonesia, cast sheet plant was fully running. In Thailand, the tight situation will release on the back of Thai MMA restarted its 90,000mt/year MMA plant on 15 July. In Singapore, Sumitomo Chemical second line of 80,000mt/y leakage problem in the reactor will delay restart because of sluggish demand and high cost. MMA prices are generally settled at US$1,700 ~ $1,750 pmt CFR in isotank. Drum customers are talking about US$1,850 ~ $1,900 pmt CFR. Cast sheet price stabled at US$2.5~ 2.7/kg.

Asian MMA prices continue to rebound in June following May price increase. Both naphtha and acetone prices are driven up by crude oil price and MMA appeared tight situation till June. MMA producers are seeking to reflect their cost increase at least partially if not fully go with strong demand from PMMA sector. Thus, MMA suppliers made the announcement for US$100 pmt MMA price increase at US$1700~1750 pmt CFR Asia for 500mt above isotank for June shipment, however, buyers resisted the higher offers, stating that current market fundamentals were balanced, especially with new capacities are starting up in the region. There were also talks of deep sea cargoes arriving in Asia in middle of June which would ease the current tightness in supply. On the other hand, the Influenza A virus subtype H1N1 widespread will hit the consuming market as anticipated and China market requirements cool down in half May. As the result, buyers think the reasonable price increased is $30~50 for June shipment. The outlook for July price will be conservative and steady.

In North Asia, China market is continuously tight. The strong demand pushed MMA price stable-to-firm at CNY 14,500-14,800/mt DEL. Lucite shut down its 93,000 tonne/year MMA plant in Caojing on 16th of May for around 45 days due to upstream SECCO shut dowm. Jilin Chemical maintained to operate at around 60%. In Korea, Daesan MMA had started production its new 90,000 pmt per year in early May, the supply was seen as adequate for domestic market demand. In Japan, improved regional demand especially from China and tight supply MMA made inventory decrease to around 16,000mt, it’s down around 5,000mt from last month. MRC shut its 55,000mt/year No.1 C4 MMA line for maintenance on 7th of May for one and half month in Hiroshima and will shut down another No. 2 line in July for two week maintenance. In Taiwan, the strong offtake from PMMA plant have lead MMA producers announced further price increase NT$1/kg for June delivery to NT$62 ~ NT$64/kg ($1,880 ~ $1,930 pmt DDP). Chi Mei continues running their PMMA at rate over 14,000mt per month. PMMA price is stable at $1,900 ~ $1,950 pmt CFR level.

In South Asia, MMA demand appears relatively healthy. In Indonesia, P.T Margacipta and P.T Astari cast sheet plant demand were improved. In Thailand, Thai MMA will shut its 90,000mt/year MMA plant in early July for two week scheduled maintenance turnaround. Political turmoil was getting moderate. In Singapore, Sumitomo Chemical restarted its 90,000mt/year No 3 line on fourth of May, the line suffered an unexpected outage at on 22 April due to technical problems. In Vietnam, ChoChun 800mt/month cast sheet will on stream early of June which was delayed since Q3 2008. MMA price are generally settled at $1,680 ~ $1,730 pmt CFR in isotank. Drum customers are talking about $1,800 ~ $1,850 pmt CFR. Cast sheet price stabled at US$2.5~ 2.7/kg.

As a result of MMA raw material and logistic cost hike, May MMA Asia prices are slightly moving up by $30 ~ $50 pmt to reflect the costs. On the supply side, the strong support by surging feedstock propylene over US$900 pmt and naphtha/acetone over US$640 pmt and $800 pmt. To follow hard at heel, Japan MMA producers and China MMA producers are under schedule shut down for maintenance and Lucite U.S.A. has closed it 40,000mt plant in April. Thus, MMA producers take tight situation pressure to adjust their MMA selling prices to avoid bleeding. On the demand side, buyers resisted the higher offers, stating that current market fundamentals were balanced, especially with new capacities are on stream already. But the resuscitated demand in Q2 mainly from the downstream LCD sector and snug supply in China underpinned. Thus, most buyers accepted moderate price increase to prevent shortage. MMA prices for 500 mt above isotank order were settled in the ranges of $1,630 ~ $1,680 pmt CFR for the May shipment. The outlook for June continues to be tight and price recovery is anticipated.

In North Asia, strong demand in domestic market has push MMA price forward RMB 13,500~14,000 in China. China government has announced New VAT Rebate Scheme that the return will provide more price support for export orders. Secco decided to postpone shut down its 900,000mt/year plant for 60-70 days due to surging market demand. Jilin chemical has shut down MMA plant because of the upstream ACN shortage. In Japan, MMA inventories have reduced to 21,000 mt, MMA demand has improved recently. The slight depreciation of the Japanese yen helped export volumes. In Korea, stronger Korean won versus the US dollar and strong PMMA demand helped the market appear optimistic. Daesan (50:50 JV between Honam and MRC) new 90,000 mt/year MMA plant will start commercial operations in end-May / June. In Taiwan, downstream PMMA plants Chi Mei has fully operated. Local supplier announced NT$2/kg increased in May delivery, prices are settled at NT$60 ~ NT$62/kg ($1830 ~ $1880 pmt) DDP.

In South Asia, apparent price rebound was seen across South Asian countries by $30 ~ $50 pmt from May shipment onward. For 500 mt above customers, orders were settled at $1630 ~ $1680 pmt CFR. Smaller customers were settled at $1680 ~ $1730 pmt in isotank while $100 pmt added on drum packing. MMA demand is getting better in ASEAN, particularly in the cast sheet segment. Most cast sheet producers are fully running in May. In Singapore, Lucite 120,000 mt/year MMA C2 capacity was running at high rate. In Thailand, political turmoil gives the impact to their economy. Cast sheet price is around $2.5 ~ 2.7/kg. PMMA pellet price is around US$1,900~1,950 pmt.

MARKET OVERVIEW

In March, MMA prices is facing the most tough challenge after demand in general is weak and shrinks by 40% across market sector. On the supplier side, AN is still very pressed for price and demand based on current propylene price, cost can’t be justified to produce AN. Therefore, the shortage of HCN material made low operating rates and higher fixed costs for ACH , MMA suppliers were difficult to offer much lower price now.

Producers expressed hope that a rebound in upstream feedstock values could help stabilized prices in March shipment. On the demand side, due to buyers felt that prices had not hit a bottom and economic crisis didn’t turn for the better, thus, buyers is willing to holding back and take wait and see attitude. MMA prices slide to $1,650 pmt - $1,700 pmt CFR Asia. The outlook of April is more conservative and most likely slight downward.

NORTH ASIA

In North Asia, due to MMA price clashed in past months in China, the prices had now dropped too low to sustain, thus, some producers had announced price increase CNY 1,000/mt in March. MRC 90,000mt/year MMA plant in Huizhou is still shut down, the restart date would be decided after a review of the market situation. Chinese local MMA price stabled at Yuan (CNY) 12,000-12,500/mt DEL. Evonik Shanghai 100,000mt/year new capacity kept on going and will on commission in Q3 2009. In Korea, MMA price is soften due to weak Korea won on import prices. A small rebound was also seen in the transparent ABS sector for LCD TVs, thus, the rebound could be sustained in Q2. In Japan, month end inventories closed to 29,000ｍt.

The high stock made producers keen to liquidate with the financial year closing in March.In Taiwan, producers both FPC and KMC inventory remained low due to slash operations over the past few months. However, Chie Mei got large flat screen order from China and lift up their PMMA production to 90% in Feb and FPC's AN plant was delayed start up till 5th March due to Olefin N0.3 outage and Olefin N0.1 injury suffered on second of March. Thus, MMA is very tight and price is flat in March. Domestic price is at NT$60 ~ NT$62/kg (US$1,830 ~ $1,880 pmt CFR ).

SOUTH ASIA

In South Asia, the market demand remains sluggish. Most Cast Sheet makers were keeping 60~70% running rate. In Vietnam, ChoChun has commission their 800 mt per month cast sheet plant in March. Lucite Singapore new 120,000 mt/year MMA C2 capacity was approval by key customers and will produce 60% rate in March.

The lower material cost will more competitive in the future. MMA price for isotanks was transacted between US$1,680-1,730/mt CFR SE Asia and drums was transcated between US$1,800~1,850/mt. PMMA pellet price is around US$1,850~1,950 pmt. Cast sheet prices are chaotic, ranging from $2.45/kg to $2.9/kg. The prevailing prices are $2.6/kg - $2.8/kg. There are some PMMA sheet made in China available in the market and dampened the market price.

MMA price in Asia is weakening over the past couple weeks. It was fueled by sluggish demand and conservative consumption. On the supply side, current production curbs to 50~60% running rate and lots of makers shut down for maintenance like ” Asahi Kasei (100kpt/year)、 MRC(107kpt/year) in Japan; LG MMA(76kpt/year) in Korea; Thai MMA(90kpt/year) in Thailand; FPC( 98kpt/year) in Taiwan; MRC(90kpt/year) in China and Sumitomo two lines (90kpt/year、80kpt/year) in Singapore”.

On the demand side, demand failed to respond from Europe and USA currently and buyers were of the view that prices had not yet bottomed out. Thus, market demand appears quiet. Rebound of basic feedstock prices and improved demand after Chinese New Year, these reasons would eventually help to halt the downward slide in prices. Prevailing market price is around US$1,750/mt CFR and the outlook for Feb. is a more stable MMA price.

In North Asia, China demand remains sluggish. Price is in the range of RMB 12,000 ~ 12,500 pmt delivered base. China government has announced the policy to stimulate domestic market. It will be optimistic after Chinese New Year. In Japan, producers were exerting downward pressure on prices as offtakes from most customers in the PMMA, cast sheet and emulsion segments remained weak. Japanese MMA inventory was around 29,000 tonnes, more than normal levels of around 20,000 tones.

The strong Japanese Yen pressured export market. In Korea, the weak demand from PMMA was push through MMA maker shut down or reduce their production rate. Financial problem didn’t improvement. In Taiwan, Local supplier has announced NT$3/kg reduction from Feb. Domestic price is at NT$60 ~ NT$62/kg (US$1830 ~ $1880 pmt)

MMA supply in South Asia appears to be sufficient to cope with the lacklustre demand. Most Acrylic sheet producers are suffering from sluggish demand both export and domestic.

In Indonesia and Vietnam, domestic market decreased 30~40% compared with January. ChoChun delayed on stream their 800 mt per month cast sheet plant till 2009 because of equipment problem. In Thailand, the market is re-shuffling and dampened due to the unstable political situation and economical recession. Lucite Singapore new 120,000 tonne/year MMA C2 capacity was coming on stream in Q1 2009 after the key customers approval for the free sample products. MMA price for isotanks was transacted between US$1,730-1,780/tonne CFR SE Asia and drums was transcated between US$1,830~1,880/tonne. PMMA pellet price is around US$2,000~2,050 pmt. Sheet market price decreased to US$ 2.6 ~ 2.8/kg.