SINGAPORE (ICIS)–Asia’s methyl methacrylate
(MMA) demand may remain subdued as the
coronavirus spread continues to disrupt the
supply chain.
In the week ended 21 February, MMA prices for
bulk parcels of 500 tonnes and above were
assessed at $1,500-1,565/tonne CFR (cost &
freight) SE (southeast) Asia, down by an
average of $2.50/tonne from the previous week,
according to ICIS data.
Supply looks to exceed demand amid a
challenging business landscape.
China’s imports of MMA are hampered as
downstream plants in the country were operating
at low rates, resulting in more volumes
available in Asia.
Key downstream polymethyl methacrylate (PMMA)
sellers faced similar challenges selling into
China, weighing down on southeast Asian PMMA spot
prices.
Some discussions for March loading cargoes have
started with offers largely rolled over from
the previous month.
However, spot buyers either held ample
inventory, or were fully covered by their
contract volume, curtailing buying interests.
A major buyer in northeast Asia has either cut
or stopped operations at its PMMA, transparent
acrylonitrile-butadiene-styrene (ABS)
and MS plants, market sources said.
Some contract volumes for MMA were
reduced as buyers cut back production.
Ongoing and upcoming plant turnarounds,
including one in the Middle East, may partially
offset the ample supply in Asia.
Taiwan’s Formosa Plastics Corp’s MMA
plant is shut from
early February-early March; Saudi Arabia’s
Petro Rabigh will shut
its plant in end-February for around 45-60
days; while South Korea’s LG MMA
will shut its
No 2 plant for three weeks in April.
In the week ended 21 February, MMA plant
operating rates in China averaged at 38.6%,
down from 42% in the previous week, as
producers attempt to prevent inventory from
building up.
Focus article by Li Li Chng
Photo: A man walks past a shop which is
going to close down in Tsim Sha Tsui in Hong
Kong amid the coronavirus outbreak. (By Kevin
On Man Lee/Penta Press/Shutterstock)
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