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

SubjectAcrylic World Newsletter-Nov. 2018
Published Date2018/11/1
Content

MARKET OVERVIEW

 

In November, MMA market is lacklustre as a result of sluggish demand and conservative consumption. MMA prices were under downward pressure at US$50~100/mt for November shipment. MMA producers are suffering with weak downstream demand and surplus MMA production capacity, especially, both Petro Rabigh C4-MTBE process 90kpta MMA plant at Rabigh and SAMAC α process 250kpta MMA plant at Al Jubail in Saudi Arabia run well and the surplus MMA quantity moved to Asia market in these months, which dampened the supply position. MMA prices were settled in the ranges of $2,700 ~ $2,800 pmt CFR. On the demand side, the soft downstream demand of cast sheets/emulsions/resin and artificial marble, in light of China tardy economy activity on the back of the escalating USA and China trade war, in which could result in 25% tariffs surcharge. Most buyers already procured sufficient inventory and slowdown consumer activity owing to gloomy economic conditions. The downstream demand from the polymethyl methacrylate (PMMA) sector was halved amid growing inventories and sluggish consumer activity at fourth-quarter 2018. On the supply side, some MMA producers curbed on 80~90% running rate on the back of poor market demand and worsen MMA prices, go with several scheduled MMA plants shut down in Q4, like Lucite International Singapore 120kpta MMA plant scheduled shut down one month for maintenance in October in Singapore.; In Saudi Arabia, Petro Rabigh (JV of Sumitomo Chemical and Saudi Aramco) 90kpta MMA plant in Rabigh scheduled shut down 3 weeks for maintenance and SAMAC α process 250kpta MMA plant at Al Jubail (JV of Mitsubishi Chemical (MCC), and Sabic) scheduled shut down 2~3weeks for maintenance in November.; In Japan, Mitsubishi Chemical 107kpta MMA plant in Ohtake scheduled shut down 80days for maintenance between September and November.; In Taiwan, Kaohsiung Monomer Corporation 100kpta MMA plant in Ta-sheh scheduled shut down for maintenance in late October.; In China, Lucite International 180kpta MMA plant in Caojing will shut down 55days for maintenance in early October and Evonik 100kpta MMA plant in Shanghai will shut down 10days for maintenance in November.; In Thailand, Thai MMA 90kpta MMA plant in Map Ta Phut scheduled shut down in later October.; In America, Dow Chemical 475kpta MMA plant in Deer Park, Texas scheduled shut down for maintenance in October.; In Europe, Evonik 95kpta MMA plant in Wesseling, Germany run at 70% on critical river Rhine levels issue. On the feedstock side, the renewed US sanctions against Iran and other geopolitical conflicts issue, the crude oil prices still hovered on US$75~80 per barrel. Naphtha prices remain at US$660~680/mt, and methanol prices were continuously increasing to US$420~430/mt on the back of major plant outage in October in Trinidad. Propylene prices slight increased to US$1,160~1,170/mt. and MTBE prices stabled at US$770~790/mt. Acetone and ethylene prices were sharply decreasing to US$550~560/mt and US$1,090~1,120/mt.

The outlook for December is conservative and soft.

 

NORTH ASIA

 

In North Asia, shrinking margins and weakening demand are emerged from all downstream sectors like PMMA, cast sheet and emulsions. In China, MMA price has been driven down to RMB 17,000 pmt ~ RMB 17,500 pmt due to weak demand of most downstream; furthermore, new MMA production of Wanhua Chemical’s 50kpta MMA plant in Yantai, Shandong province will commission in Q4, dampening MMA market prices in November. It’s heard China's latest tit-for-tat tariff on 5,207 US products that the range between 5-25%, including hundreds of chemicals attracting the highest duty rate. MMA is among those chemicals listed. Hence, China government announced the export tax rebate rate from 13% current goods, and raised to 16% on 1st of November. In Japan, domestic MMA prices stabled. In South Korea, domestic market edged down due to bearish demand and the pessimistic outlook. MMA prices decreased to Won (W) 2,900/kg~ (W)3,000/kg. It’s heard a major MMA producer un-expected shut down for mechanical issue in October. In Taiwan, major PMMA makers have cut their production to 50~60% operation on the back of weak market situation. MMA offtake became aggravated and higher MMA inventory push domestic MMA prices decreased NT$1~2/kg in November. MMA prices were NT$79 ~ NT$82/kg DDP. In addition, it’s heard Kaohsiung Monomer Company Ltd(KMC), located in Ta She Petrochemical Park, Kaohsiung, 90ktpa MMA plant scheduled shut down in late October because upstream CPDC (China Petrochemical Development Corp.) AN plant proceed annual maintenance at same time.

 

On the polymethyl methacrylate (PMMA) side, PMMA prices were assessed softer across Asia, based on buying appetite was depressed amid sharp declines in the China domestic markets and demand has started to slow down during the rest of this year. The general purpose (GP) PMMA prices were sharply down to $2,700-2,800/mt CFR.

 

SOUTH ASIA

 

In South East Asia, most acrylic sheet producers are extremely pressured on the back of shrunk domestic market and export. In Indonesia, market demand is soft and offtakes became slow in November due to high inventory. In Vietnam, sheet business shows declining. Most cast sheet plants are running under capacity. In Thailand, domestic market demand appeared quiet. It’s heard Thai MMA 90kpta MMA plant in Map Ta Phut scheduled shut down in later October. In India, domestic market demand appears steady but  MMA prices decreased to US$2,700~2,800/mt CFR in isotank.

 

On the acrylic sheet side, the cast sheet prices were in the range at US$3.5~3.6/kg CFR Asia.


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