略過巡覽連結

略過巡覽連結Borica > Product & Industry > Hymer > Newsletter

SubjectAcrylic World Newsletter - Oct. 2020
Published Date2020/9/30
Content

MARKET OVERVIEW

In October, tight MMA supply and surge demand from Indian market are pushing up MMA prices by $150~250 pmt, and the supply is under allocated basis. MMA inventory was depleted due to low production rate, un-expected shut down, and several MMA plants annual turnaround in Q4. Furthermore, MMA producers suffered from MMA inventory reduction, firmer feedstock prices and freight costs increase and are keen to pass on the cost increment to customers. On the feedstock side, MMA feedstock prices for naphtha stabled at US$380~410 on the back of the crude oil in the range at US$40~45/bbl (with ICE Brent crude oil prices at US$42.06/bbl and WIT crude oil price at US$40.38/bbl on 25th of September), however, the ethylene prices were moving up rapidly to US$800~850 pmt and the MTBE prices were slightly increasing to US$400~450 pmt. Methanol prices increased to US$220~240 pmt. The price of Propylene continued increasing by US$50 pmt to around US$870~920 pmt amid the reduced refinery production efforts. Acetone prices were facing upward pressure to US$850~900 pmt, which was pushed up by the substantial spike of downstream isopropanol (IPA) demand for sanitization as the concern of the potential second wave of Covid-19. It’s heard the surge demand from America owing to the hurricanes hitting Texas and Louisiana end August, which affected raw material supply in September. On the supply side, in view of raw material costs increment, the ACH process cost is increasing and the same for C4 process, which has dented the margin of MMA producers who have curbed production running rate to 70~80%. For example, in China, it’s heard PetroChina 100kpta (two lines) MMA plant in Jilin, No.1 line, 50kpta, shut down from July. In Japan, it’s heard Asahi Kasei 100kpta MMA plant in Kawasaki, cut production rate to 70%. In Taiwan, it’s heard Kaohsiung Monomer Co 100kpta MMA plant at Ta-Sheh in Kaohsiung run at 60~70% on the back of upstream AN plant reduced production rate for shrank market demand. In Thailand, it’s heard Thai MMA 180kpta (two lines) MMA plant in Map Ta Phut run at 80~85%. In Singapore, Lucite International Singapore 130kpta MMA plant runs at 50~60%. In Thailand, PTT Asahi Chemical 70kpta MMA plant in Map Ta Phut, Thailand, run at 70%. In addition, several MMA plants will have annual turnarounds and outage in Q4, like (1) It’s heard Sumitomo Chemical 53kpta MMA plant in Jurong Island, Singapore scheduled shut down a month for maintenance and will restart in middle October. (2) In Korea, it’s heard LG MMA 160kpta MMA plant in Yeosu, will shut down 6 days for maintenance in middle Oct, Lotte Chemical 50kpta MMA plant in Yeosu, will shut down 20 days for maintenance in October, and Lotte MCC Corp 90kpta MMA plant in Daesan, will shut down 2 weeks for maintenance in Oct. (3) In Japan, it’s heard Mitsubishi Chemical Corporation 110kpta MMA plant (ACH process) in Otake, scheduled shut down around 3 months for maintenance in middle of September, another 60kpta MMA plant (C4 process No.2) will shut down for maintenance in early October. It’s heard Mitsubishi Gas Chemical 40kpta MMA plant in Niigata shut down 3 months for maintenance in August. It’s heard Asahi Kasei 100kpta MMA plant in Kawasaki, scheduled shut down 50days for maintenance in end September. In addition, it’s heard Sumitomo Chemical 32kpta MMA plant in Himeji, outage in August for technical issues. (4) In Europe, it’s heard Roehm 225kpta MMA plant in Worms shut down for maintenance in September and sales controlled in October. It’s heard Lucite International (MCC Group) 200kpta MMA plant in Billingham, Teesside, UK will shut down for maintenance in October. On the downstream side, demand is sluggish across all market segments, which dampened by conservative and limit exports demand resulted from the serious Covid-19 outbreak globally. The bearish downstream demand of emulsions/resin and artificial marble in light of economy recession. However, various protective measures are implemented before government starts to ease restrictions and reopen the economy. This creates polymethyl methacrylate (PMMA) and cast sheet demand till Q4. MMA demand remains healthy and most of them kept high operating rate to boost MMA offtake. In addition, surge MMA demand from India and limited deep sea cargo arriving Asia region. Thus, MMA producers implemented supply allocation and asked for MMA prices increase despite of resistance from customers. In Europe, tight MMA supply on the back of supply disruption due to MMA plants scheduled shut down and limited import. Healthy demands were continuously pushing MMA prices increasing and sales control in October. In America, demand remains subdued dampening by the Covid-19, however, MMA demand remains healthy while the backlog for acrylic sheets as some states allow restaurants to expand indoor capacity, the use of protective barriers still increase. For this reason, it’s heard a major MMA producers announced 6 cents/lb MMA price increase for October shipment. The confirmed case of Covid-19 has mounted to over 33.3 million cases in end September globally (including around 7.32 million cases in America, 6.07 million cases in India, 4.73 million cases in Brazil, 1.15 million cases in Russia, 813k cases in Colombia, 805k cases in Peru, 730k cases in Mexico, 716k cases in Spain, and 711k cases in Argentina), and the mortality rate decreased to 3.3%.

The outlook of November MMA is optimistic and the price is likely to be firming up.  

 

NORTH ASIA

In North Asia, China domestic MMA price appears stable to firm in October, against the backdrop of high raw material costs and limited MMA supply, which is due to the average 60~70% operation rate at most MMA plants and several MMA plant shut down between September and October. However, it’s heard the 260kpta AN plant and 100kpta MMA plant of Sinopec Zhejiang Zhoushan Petroleum Co., Ltd at Zhoushan in Zhejiang province commissioned in September, and Qixiang Tengda new MMA plant commissioned in September and ran at 80%. Furthermore, Chinese RMB has been appreciated vs US dollar recently, which suppressed domestic MMA market prices. In addition, most buyers planned to build up their MMA inventory before the Chinese National Day holiday from 1th to 7th October. Commercial activities will slow down during the period since most factories limited production and restricted transportation during H2 September to early October owing to the National Day activities. MMA prices soared up rapidly by RMB 1,000 and hovered around RMB11,500-12,500/mt DEL. On upstream side, high acetone prices push ACH process costs increment and low Acrylonitrile prices impelled most Chinese AN producers cut production or shut down, like, Haili 130kpta AN plant in Shandong, scheduled to shut down from July and extended to September owing to technical issue. Sailboat Petrochemical 520kpta AN plant in Jiangsu, run at 80%. Jilin Petrochemical 452kpta AN plant in Jilin, run at around 70%. Sinopec Anqing Petrochemical 210kpta AN plant in Anqing, reduced run rate to 80%. In Korea, domestic market demand appears healthy owing to the PMMA prices and demand boosted with tight MMA supply. The MMA supply shrunk because majority of MMA plants scheduled shut down and surged PMMA and cast sheet demand in Q4. In Japan, MMA supply tightened on the back of limited supply availability, amid several MMA plants’ turnaround plan and outage. In Taiwan, surge MMA demand from Indian market and local PMMA maker boosts domestic MMA prices by NT$2~3/kg and supply allocation in October. In addition, it’s heard Kaohsiung Monomer Co., 100kpta MMA plant at Ta-Sheh in Kaohsiung will delay annual shut down to early November due to MCC group tight MMA supply. Prevailing MMA prices were NT$52~ NT$55/kg DDP

On the polymethyl methacrylate (PMMA) side, the shot-up MMA prices lifted up downstream polymethyl methacrylate (PMMA) prices. The general purpose (GP) PMMA price continues increasing to $1,550-1,650/mt CFR China, and $1,650-1,850/mt CFR Southeast Asia.

 

SOUTH ASIA

In South East Asia, cast sheet customers are under extreme pressure owing to shrunk domestic market demand and MMA costs increment. Cast sheet makers complained that the huge MMA cost increase can’t be passed onto to customers. However tight MMA supply and high MMA raw material costs impelled them to accept the price increase, as it’s estimated that MMA prices will not go down in the coming months. In Indonesia, domestic demand appears weak impacted by Covid-19 pandemic. In Vietnam, domestic market demand is steady on the back of export order increased in October. In Thailand, the market is re-shuffling and dampened due to political factors. In India, surge domestic market demand ahead of Diwaili festival, however, Covid-19 that simply decimated the demand uncertainty.  

On acrylic sheet side, the cast sheet prices were in the range of US$2.5~2.8/kg CFR Asia.

PS: A book with the title of ‘Technology Behind Acrylic Sheet Manufacturing’ compiled by Borica will be ready for sale soon.

 cover book.png

MMA Prices

      US$/mt       

October Price Range

September Price Range

Asia contract prices

1,340~1,430

1,290~1,390

Asia spot prices

1,550~1,750

1,350~1,550

 2020 October.png



       >>Newsletter Archive