Despite the ongoing contract negotiations in February by the European MMA, there have been double-digit and triple-digit decreases in relevant agreements so far, marking the 11th consecutive month of decline in monthly contract prices.
| Melamine |
Contract negotiations are expected to end this week, and looser supply and demand fundamentals remain the main source of downward market pressure.
Spot prices remained stable this week as buyers sought to bring FD prices in Northwest Europe below 2000 euros per ton, a point traders insisted on.
Supply is still plentiful, but rebalancing is expected in the future, factories will start at a lower speed, and maintenance will continue until spring.
With the start of the traditional paint season, demand is picking up and will continue until March.
In the future, the global start-up rate will remain at a relatively low level. In view of weak demand in Asia and Europe, factories need not increase the start-up rate.
At present, there are many equipment maintenance plans in Asia, and Yingchuang and Lucite also have maintenance plans in Europe in April.
Weak automobile market
The outlook for the plastic industry remains bleak, with demand for automobiles expected to weaken in Europe and Asia in the first half of this year.
Automobile market is the key terminal market of PMMA, and also the main area of future growth.
Application of MMA downstream product PMMA in automobile industry
Manufacturers say their goal is to introduce new applications for scratch resistance and durability of PMMA, which will increase the use of PMMA in automobiles.
Some traders said this week that demand had risen, possibly due to stockpiling before Britain left Europe.
The rise in demand may also be due to other factors, such as the season, the end of market de-inventory, and buyers’increased purchasing power after the recent price decline.
| Sodium selenite |
A source from INEOS Nitriles, a European chemical giant, said on February 14 that the announcement of force majeure at the Acrylonitrile (ACN) plant in Seal Sands, UK, had no direct impact on Lucite International’s production of MMA.
In the first quarter, MMA settled at 2,260-2,290 euros per ton of FD in Northwest Europe, down 150 euros per ton at the low end and 200 euros per ton at the high end compared with the fourth quarter of last year.
MMA January FD Northwest Europe contract settlement price was 2,495-2,515 Euro/ton, low-end fell 100 Euro/ton, high-end fell 125 Euro/ton.
Almost all of the MMAs are synthesized by polymerization. The most important application is casting, moulding or extrusion of PMMA or modified polymers.
| Azodicarbonamide (AC foaming Agent) |