Other regions

Products/applications

Taking a Closer Look at the Markets - April 2010

Since the last issue of Freeflow in September 2009, demand for MMA has dropped from the high point we were experiencing at the time - which was being driven in part by re-inventorying throughout the chain - to a more ‘normal’ and sustainable level. by the end of q1’10 we are starting to see encouraging signs in some of the downstream markets. the European methacrylates market is also still adjusting to the asset closures that occurred in 2009 and, for the first time, the true impact of these is being felt within the industry supply chain.

“Demand in Europe is recovering after a slow start to the year and it is predicted to continue to show a modest increase over 2009 levels. The European supply/demand balance has changed since this time last year; Europe is a net importer and its supply chains are more stretched.”

Supply

Europe is now reliant on fewer production assets than at this time 12 months ago. As a consequence, imports are a more significant aspect of the region’s mass balance. For the first time the European market has to be able to import product on a regular and sustained basis. This means that worldwide supply and demand balances, European market pricing (relative to the other regions), as well as fluctuating parameters, such as exchange rates, will all have a major part to play in determining the availability of methacrylates in Europe in the future.

Lucite International (LI) has recognised the impact that this change of circumstances will have, and has taken steps to address it. With longer supply chains and lower total inventory being held in the region, there is now, more than ever, a need to work closely and co-operatively with our customers and we are actively seeking this dialogue. In the last six months a new plant in China has started up, but a significant proportion of the MMA capacity that was planned to be introduced or re-introduced this year has suffered setbacks. Most notably there has been a delay to the two new-build projects in Thailand. This has resulted in there being significantly less installed MMA capacity than had originally been planned at this time, which is particularly important given the higher than forecast global demand from the market.

Demand

After a disappointing end to 2009 and an overhang of that environment into 2010, demand in Europe has taken a number of months to become properly re-established. The onset of the coatings season has provided a welcome boost to demand levels and it is forecast that this segment will continue the recovery (with the normal seasonal fluctuation) that it has exhibited since Q2 last year. By contrast, demand from the cast and extruded sheet markets has not been so strong since they experienced an up-turn in Q3/early Q4’09 and demand remains at the same level as Q2’09.

The major factor that will determine European methacrylate demand is the rate at which construction projects are resumed. Many projects for domestic dwellings have been re-started after a 12-month hiatus. However, there is real concern about the commercial side of the industry and the funds that governments will have to commit to national infrastructure projects.

Demand in Asia, and in particularly in China, bounced back sharply last year in Q2, and has continued unabated. The support provided by various governments in the region, plus an increased level of confidence, has resulted in Asia being short of product, which means it must import, when it had been predicted to be in a net export position.

Demand continues to be fuelled by pMMA for LED screens, SM for packaging and t-ABS for domestic appliances. In addition, the regional automotive industry seems to be emerging from the doldrums of 12 months ago, at a faster pace than in other parts of the world. After many months of subdued demand, all segments of the North American market have picked up, which is putting additional strain on the limited supply in that region.

Cost Base

The MMA industry in Europe is running significantly behind the curve compared to its feedstock costs. The cost of acetone alone has increased by 23% in 2010, with additional cost pressure being expected from methanol, ammonia and natural gas/energy. From crude oil down, it appears that there will be no relaxation in this trend in the immediate future and price increases for many of the major feedstocks required for methacrylate production have already been announced for Q2’10.

Summary

Demand in Europe is recovering after a slow start to the year and it is predicted to continue to show a modest increase over 2009 levels. The European supply/demand balance has changed since this time last year; Europe is a net importer and its supply chains are more stretched. This will become even more apparent as demand returns. LI’s objective therefore is to work constructively with its customer base through what is hopefully an upswing in market demand to ensure cost effective continuity of supply.

MmaGraph2010

Back to top

Taking a Closer Look at the Markets - September 2009

Since the last issue of FreeFlow in September 2008, the world of MMA has experienced unparalleled change, as has the market for almost every other industrial chemical. As we emerge from that particularly turbulent period, Lucite International (LI) is assessing the state of the 'new' marketplace and looking ahead to see what the future will bring.

Difficult times call for tough decisions

Within the last four months, two MMA manufacturers in Europe have made announcements that will result in a combined reduction of 17% in the installed MMA capacity in Europe. This is on top of the closure of both Russian MMA plants in 2008, and represents a significant re-structuring of the industry in a relatively short period of time.

Demand has bounced back

In Q1'09, demand for MMA in EAME fell to about 65% of the record levels experienced 12 months earlier. By Q2'09, that statistic had improved to about 85%, however, by the end of Q2'08 it was already obvious that a downturn was looming. At the time of writing, during Q3'09, demand for MMA has rebounded to 2007 levels; the result of an improvement in underlying demand as some confidence is restored, and also as a result of re-stocking throughout the downstream chain.

The up-turn in demand form the coatings segment was first observed in early Q2'09 and was due to the traditional seasonal increase in demand for coatings applications through the summer months. This has been primarily for architectural coatings and for wood and metal, but demand from the automotive sector has also been observed to have picked up as a result of the various stimulus packages being implemented by countries around Europe.

Today, there are also signs that demand from the cast and extruded sheet markets is improving. This is possibly the most welcome sign, as it is these segments that are most highly aligned with the construction industry, which suffered the biggest downturn during the first half of this year.

Demand in the Asian market had already started to increase by early Q2'09, driven by pMMA demand for LCD screens; this seems to be being sustained. Demand in the Americas is still subdued, although the market is balanced due to available capacity.

Flexibility is key

Despite these high demand levels in Europe, few players are willing or able to give confident predictions on the outlook for Q4'09, or 2010. It is clear therefore that there will be an ongoing requirement to be flexible and be able to adapt to whatever market environment materialises over the coming period.

New projects coming to market; but what next?

Over the past year, the majority of new plants that were scheduled to start operating have been brought on-line more or less to plan. From LI's perspective, the pinnacle was the safe and successful start-up of the Alpha 1 plant in Singapore, which is now operating at flowsheet rates. The Daesan MMA plant became operational in Q2 this year and Evonik intends to bring its plant in China on-line later this year. MRC will bring its new plant in Thailand on-line in 2010, but after that, the arrival of new capacity is much less certain.

Projects planned for completion post 2010 would have to have been sanctioned during the last 12 months, which would have been difficult in an environment where chemical companies have been struggling to return the margins required to support new investment. The longer that this period of economic uncertainty lasts, the greater will be the delay to all but the most financially attractive and robust of new-build projects.

Cost base

Feedstock costs remain a concern. While the current elevated demand for MMA is welcomed, the general increased level of demand for base chemicals is a concern for the cost base of manufacturers. The trend of increasing acetone costs through Q1 and Q2 this year against a backdrop of falling MMA prices was unsustainable and meant that the trend had to be reversed; hence MMA prices increased in Q3. However, the relentless rise in acetone costs is continuing through Q3 and methacrylates prices must now be moved upwards again to ensure that manufacture remains profitable.

Summary and outlook

The landscape in Europe is going through a period of significant change, to which we will all have to adapt. The MRC/LI group continues to invest in new, cost-effective capacity, and to bring that capacity to market for its customers via reliable supply chains. The outlook on demand is still unclear and the ongoing challenge for LI will be to remain as flexible and responsive as possible to customer needs in what will inevitably continue to be a dynamic market.

MMA Marketreport

Back to top

European Methacrylate Market Review - September 2008

Significant Change in the Last Six Months
Much has changed in the MMA industry since the last issue of FreeFlow in April this year. Manufacturing costs have escalated rapidly, production capacity has been closed down - temporarily and permanently, and the demand picture in Europe has adjusted to a new level. All of this has given the methacrylates market in Europe (and globally) a very different feel from that of only a few months ago.

2008 Demand Outlook Is Still Positive
European economic activity has been affected by the slower US economy and the credit crunch, but is still proving to be quite resilient. It is now apparent that Europe underwent a period of de-stocking from the supply chain that took place from mid Q1 to mid Q2. That has now largely been completed and the underlying demand picture is much clearer. While it is true to say that European MMA demand will not grow at the same rate in 2008 as it did in 2007, demand remains healthy and, for the moment, stable (see chart below).

Global MMA demand is still driven by the Asian region. Demand for pMMA for LCDs, MS (methyl styrene) and tABS (transparent ABS) continues to be very strong. Changes to coatings formulations due to new VOC legislation is also contributing a significant and sustained level of demand growth worldwide. In Europe, all sectors have been impacted to some extent by the downturn in the construction industry (primarily housing new builds), but many methacrylate-consuming companies are continuing to invest and are bringing new efficient capacity to the market in 2008 and 2009, which will allow those players to remain competitive in today's global market.

Production Side Has a Mixed Report
MMA production in Europe has operated well in the first half of 2008, but there have been some significant events more recently that have reduced the overall amount of MMA in circulation in Europe. The two Russian producers ceased operation in Q2 and some Asian producers have reduced operating rates due to soaring prices and availability of feedstocks. This has had a noticeable tightening effect on the MMA supply/demand balance in Europe. In addition, the differing regional movements in raw material prices and MMA prices around the world and the US Dollar strengthening against the Euro means that there is significantly less incentive for US and Asian producers to export into the European region.

In the second half of 2008, there will be a heavy overhaul programme in Asia and a number of major planned overhauls taking place in Europe, including a four week outage at Lucite International's (LI) Cassel works site in the UK in Q4. These events will further reduce available MMA during this period.

New Build Projects Proceeding
Delays continue to be reported on some new build MMA projects, as the difficult EPC market and soaring construction costs make project completion increasingly challenging. However, at the time of writing this article, pre-commissioning of LI's Alpha plant in Singapore has been completed and first chemicals have been added.

Feedstock and Energy Costs Are a Major Concern
For the whole of 2008, but particularly through Q2, increases in the costs of raw material and energy have been relentless and in many cases have reached unprecedented levels. Many have not yet peaked and there remains significant volatility and uncertainty in the markets. The net result has been a serious compression in margins for MMA. This is the picture facing MMA producers worldwide, irrespective of technology base.

Through the first half of 2008, MMA prices were increasing in Asia and the US whilst in Europe they were falling. That trend has been reversed in Europe in Q3 but the MMA industry must still strive to return acceptable margins so that in the short term the required volume can be produced and, in the longer term, that investments will be made in the new capacity required to satisfy the world's continuing healthy growth in MMA demand.

Methacrylic Acid (MMA) Sees Strong Demand Continue
Demand for MAA in Europe continues to be robust. Despite a slump in housing starts in some parts of Europe, the ongoing activity in new commercial build and infrastructure projects is sustaining a very healthy demand for MAA through the use of concrete additives. Demand for MAA via this route is also very strong in Asia and the Middle East where construction continues unabated.

Although figures show the automotive sector to be down in the more traditional geographic areas, demand for automotive coatings in developing countries has increased and hence the level of MAA demand into this segment has been sustained. The demand for MAA for latexes and speciality resins for coatings for industrial applications has also been very strong, due in no small way to the level of investment in chemical and process plants.

All in all 2008 looks to be a good year for MAA demand, and this is forecast to continue. However, MAA faces the same challenges as MMA with regard to feedstock costs and depressed margins, and improving this position will continue to be the number one focus for the business.

Back to top

European Methacrylate Market Review - April 2008

MMA demand continues to be robust in the first quarter of 2008 and the outlook for the rest of 2008 is positive, if a little more cautious than at this time 12 months ago.

Lucite International (LI) has a strong commitment to delivering a reliable and high quality supply service to its customers in the MMA merchant market. This service extends beyond delivering products that meet customers' needs on time, and in full to ensuring that it adds value wherever it is possible to do so. With this in mind, we are pleased to be able to share our understanding of the MMA market dynamics so that our customers and partners can appreciate the trading conditions we face together. With more than 25% market share and a global spread that encompasses the US, Asia and Europe, we believe that our world-class systems and local market intelligence provide the best possible forecasting and planning tools to underpin effective supply. Here, MMA Business Director, Malcolm Kidd, shares his thoughts on the current market dynamics and outlook for 2008.

Another strong year for growth in MMA demand
Statistics show that 2007 was another strong year for MMA. Global demand increased by over 5% to 2.9mmtes; the highest growth came from Asia with Europe also contributing a strong performance. The major European economies remained buoyant all year and the developing countries within the region, particularly those in Central and Eastern Europe, maintained their rapid expansion. This environment resulted in a total increase in MMA demand for the Europe, Africa and Middle East (EAME) region of above 4.5% over that of 2006.

2008 outlook is still positive
The impact of the well-publicised slow-down of the US economy, and the squeeze on money lending is not having the same pronounced effect in Europe as in the US. Some reports suggest that the impact in the European region will be dampened compared to the US, however, the influence of the weaker US currency is encouraging imports. Some slower indigenous demand growth is becoming apparent in a few specific areas. MMA demand continues to be robust in the first quarter of 2008 and the outlook for the rest of 2008 is positive, if a little more cautious than at this time 12 months ago.

New build proceeding to plan
New MMA projects continue as planned with the plant in korea coming on-line successfully in November 2007, and the first new plant in Singapore to be commissioned within the next few months, followed by Lucite International's 'Alpha 1' plant early in Q3. The chart above shows the incremental operating capacity added and the global demand growth achieved in the last three years, together with projections for this year and next. NB: Operating capacity is a downward adjustment to nameplate capacity to allow for known operating limits and planned outages.

Interestingly, since 2005, three world-scale plants have been brought on-line and global occupacity has not fallen below 93%. The forecast is that the new capacity that is planned will be required to satisfy the projected level of growth in demand for MMA.

MMA demand strong across the segments
One of the most positive aspects of 2007 and the outlook for 2008 is that MMA demand is growing well in all the major market segments. Use of MMA in LCD technology continues to be a major driving force behind this global growth. Recent announcements from major players in this field outline a commitment to investing many millions of dollars into new manufacturing facilities that will deliver even larger units for the consumer, which further illustrate the confidence in this sector.

Selective sectors are particularly robust
In the last 6 months, major investment announcements in methacrylate-based coatings and resins indicate that the strong growth that has been observed in this segment over the last few years will continue. In the coatings sector, the current wave of consolidation activity is a trend that is being driven by the desire to grow through the promotion of major brands and is resulting in investment in new production capacity. The impact modifiers and processing aids markets continue to move rapidly. New capacity was brought on-line in the EAME region in Q4 2007 and more is planned for H2 2008. Demand for acrylic sheet for glazing, fabrication and signage had a very healthy 2007 alongside the construction industry resurgence in Europe. Demand continues to be robust in 2008.

MMA margins compressed over last 6 months
There has been no respite in the cost of producing MMA as prices for the major feedstocks have either increased or sky-rocketed in the last six months, whilst selling prices have lagged behind. Cost pressure is a major issue for all technology routes to MMA. Our sincere hope is that feedstock costs will fall through the remainder of 2008, but irrespective, the MMA industry must get to the point that it can generate margins that will reward reinvestment, and hence foster continued growth.

Back to top

European Methacrylate Market Review - September 2007

With manufacturing, R&D, sales and marketing and support operations in all three main economies, Lucite International (LI) is uniquely placed to provide reliable and up-to-date market data to support its customers and partners in the acrylics industry. Local knowledge and experience is backed by world-class systems to help ensure that the information is an accurate reflection of the climate we face in the MMA industry. As part of a regular quarterly review that is publish both on line here at www.luciteinternational.com/freeflowmarket) and in FreeFlow magazine, we hear from Malcolm Kidd, LI's Commercial Director for Monomers in Europe.

The outlook for Europe remains positive
Over the past 12 months demand for MMA in the Europe, Africa and Middle East (EAME) region has increased by a healthy 5%. This positive growth trend looks set to continue at a similar rate through 2008 and is attributable to ongoing robust performance of all 15 EU countries' economies. The rapid improvement in general standard of living within the EU's developing nations has given an added boost to the average growth figures for MMA.

Strong demand and investment
Sectors showing the strongest demand for MMA over the past 12 months include: polymer sheet, speciality resins and processing aids such as those used for the production of PVC window profiles. The construction boom in the EAME region has been particularly evident during the last 12-18 months and has resulted in a tremendous pull-through of MMA and other associated monomers. Even more encouraging are the recent announcements from customers of planned new investments over the next two years that will further increase the demand for MMA. Several other major players in the industry are known to be in the advanced stages of evaluating investments in the same time period.

European demand keeping pace with the rest of the world
Asia is undeniably the 'hot-spot' for growth in MMA demand, but the recent performance of the European region continues to impress with the first six months of 2007 experiencing the highest ever demand for MMA.

In a global market of approximately 2.9 million tonnes in 2007, the EAME region will account for almost 25%. In approximately two years time, Asia is predicted to have grown to account for just over half of the world's demand for MMA. However, EAME and the Americas are also predicted to have good sustained growth in that period - and without any significant increase in MMA production capacity.

Global MMA Demand

New build keeping pace with demand
Worldwide demand for MMA has grown at an annual average of 4.75% each year over the past 25 years. Over the last 5 years, the growth has been closer to 7%. These figures suggest that new MMA capacity of almost 140kte is required every year to meet the 4.75% increase, or 200kte at the higher growth rate. Relatively little new capacity was added in 2006 and the same scenario seems likely again in 2007, with at least one project being delayed into 2008. Next year will see a number of new plants being commissioned, including LI's own Alpha 1 plant in Singapore.

Today the MMA industry in Europe is estimated to be operating with an occupacity of >95%, after accounting for planned and unplanned outages. With no significant new capacity scheduled to come on line for at least the next 18 months, the industry will continue to operate at this level, which will provide an ongoing challenge for the supply chains.

No relief from feedstock costs
The cost of producing MMA (irrespective of technology) has stayed high through 2007 and is forecast to continue as such through 2008. The price of crude oil fluctuates, but prices today are 15% higher than 12 months ago and have been as much as 30% higher during this period. Despite high prices, global demand for base commodity chemicals remains strong, resulting in this cost increase being passed down the chemicals chain. For example, in Q3 2007, the acetone price in Europe is the highest it has ever been. LI continues to look to increase its manufacturing efficiency and optimise its supply chains, but 2008 looks set to provide the challenge of another year of high cost environment for producers.

Back to top

European Methacrylate Market Review - July 2007

Following the successful launch of FreeFlow magazine and our on-line quarterly market analysis in April this year, we are pleased to bring you our latest update. MMA Monomers Commercial Director, Malcolm Kidd, gives his views on the continuing strong demand for MMA and how the market is shaping up as we enter Q3.

Strongest ever European MMA demand
In Europe we have experienced a balanced market with relatively stable pricing for the last two quarters. Since the beginning of this year Europe has experienced a period of strong demand and good supply, despite the inevitable hiccups. We are expecting the strongest merchant demand on record in Europe during Q2. The supply side performed very well in Q1 with only one noticeable outage. However, in Q2 the supply side has experienced a number of planned and un-planned outages in Europe and other regions. As a consequence, we believe that European stock levels were very low at the end of June. These are now recovering slowly, but will not be at a satisfactory level until the end of Q3 at the earliest.

Global Markets move into balance
The major European economies are booming and demand for MMA (and pMMA) is benefiting. Demand from Asia is still very strong. The US market is recovering after experiencing softer conditions in Q1, as indicated by the level of housing starts. As a consequence, the global MMA market is in balance. Asia remains a net importer and is currently satisfied by product shipped from US and Europe. July/August will be a challenging time globally as a number of planned outages in Asia will result in an increased demand from the other two regions - both of which are working on low inventory levels.

Forecast over 5% growth in European demand during 2007
During the past five years growth in MMA demand in Europe has been over 5% per annum. We forecast that this will continue through 2007 and 2008. The acrylic sheet has taken the lead and is running close to maximum capacity. The processing aids segment is also experiencing higher growth rates, fuelled by the active construction market, especially in Russia and FSU countries where sales of PVC windows are experiencing double digit growth. Demand increase in the coatings segment is following GDP levels after experiencing a period of strong growth in the early part of the decade. Demand from the coatings sector was softer in Q1; however in Q2 we have experienced the typical seasonal uplift, even with wet weather across Northern Europe. Indications are that the normal holiday period for manufacturers in July and August will be shorter than in the past. As a consequence, we expect lower stock levels to persist through Q3 and pricing levels to increase.

MAA market tightens
The demand for MAA continues to grow at a healthy rate. Relatively new applications, such as polymer additives for the construction industry, are driving additional demand on top of that from the more traditional sectors. Recent planned and unplanned outages, plus the delayed start-up of a new asset in the US have resulted in a tight market. It is expected that prices will remain firm.

Back to top

European Methacrylate Market Review - April 2007

MalcolmKidd

Delivering reliably to customers in the MMA merchant market is of the highest priority for Lucite International (LI). We realise just how critical our ability to supply on time and in full is for our partners' businesses. Achieving consistent supply requires a deep and wide appreciation of the market dynamics and that's where LI is uniquely placed. With more than 25% market share and a global reach that incorporates all three major geo-economic regions, we believe that our world-class systems and local market intelligence provide the best possible forecasting and planning tools to help us supply effectively. Here, MMA Monomers Commercial Director, Malcolm Kidd, shares his thoughts on the dynamics for 2007 and how they may effect the European market.

MMA stocks will continue to be under pressure
Demand for MMA continues to be strong on the back of some of the best economic conditions we've had in Europe for over six years. Areas of strongest growth are associated with the construction industry and include; coatings, baths and processing aids used in the production of PVC profiles for window frames. The supply base is generally performing better than last year, however during Q1 the industry has experienced unplanned interruptions. This, coupled with continuing strong demand, has resulted in European inventory levels falling significantly. During Q2 a couple of European plants will shut down for planned maintenance and we will move into the higher demand period for the coatings industry. All of this means further pressure on European stock levels.

Surging European growth
Surging fourth-quarter growth across the biggest economies saw the eurozone begin 2007 on the back of its strongest expansion for six years. The EU statistical agency said that eurozone GDP rose by 2.7%, its best rate since 2000, with the annual pace of expansion in the forth quarter accelerating to 3.3%, from 2.7% in Q3 2006.

Downstream growth driving MMA demand
The construction industry is a key downstream user of MMA. The demand in this industry is seasonal and associated with economic performance. With strong economic performance from the eurozone economies and moving into periods of higher seasonal activity we expect MMA demand to follow historic trends and demand to increase in Q2.

Performance of European supply base will impact stocks
The European MMA supply base performed relatively poorly for periods in 2006, with most producers experiencing unplanned outages. With continued growth in demand the supply side is being put under constant pressure to deliver and limit further reduction to already low inventories.

Downstream MMA use in a mature market

Track record of MMA growth set to continue
For the last 25 years global MMA demand has grown at an average of 4.75% per annum, however over the last ten years we have experienced an increase in this growth to ~5%, as Asian demand has grown at ~8% on the back of innovation and regional activity. In the last 5years, since the difficult year in 2001, the Global CAGR has averaged over 6.5%, with Asia topping 10%. Last year (2006) we estimate the global MMA market consumed some 2.75 million tonnes - 1m tonnes more than 10yrs ago - of which >45% was in Asia (36% in 1996). Until recently increases in supply have been through plant up-rates and a limited number of new builds; of which Lucite International has been at the forefront with its first plant in China last year and will follow quickly with a new plant using Alpha technology in Singapore in 2008. Whilst other new plants in Asia are due to come on stream from next year and in 2009 - the total will be challenged by the annual increase in demand. We predict a continuing tight global supply and demand scenario.

MMA growth continues to grow
One of the exciting features of the MMA market is the increasing level of global growth. The leading region is Asia with 10% growth on the back of strong economic activity and new downstream applications. The highest profile new development is the use of pMMA to provide part of the lighting path for LCD screens. In 2006 we estimated that over 110kt of MMA were used in this application and with the development of atmospheric lighting we believe this segment will continue to grow.

Supply is challenged to keep-up with Demand
During the past 12 months two new world scale plants have started in China, including our own plant which is operating at full capacity. Our next plant, using the new Alpha technology process, will start up in Singapore in Q2 2008. As an industry we need this plus the other new build capacities in order to meet the forecast strong demand.

World MMA Consumption 1980 - 2006

Lucite International committed to support strong growth in European demand
Since 2000, European demand for MMA has grown annually at an average of over 5% with home and construction industry applications being key drivers. It is the intrinsic properties of MMA and its fit into current lifestyle that has driven this growth. Exceptional durability, UV resistance and weatherability make MMA a key monomer in the production of coatings, while flexibility, surface warmth, colours and effects make it an ideal material for bathroom products and contemporary interiors. And as economies continue to prosper, we predict this growth to continue. In Europe MMA production has traditionally exceeded demand, however the extra capacity is declining as the market grows rapidly. Europe saw its last expansion in 2003 and since then we believe output has levelled. During recent years we've experienced a number of un-planned supply restrictions. At times, this has resulted in a particularly tight market. We are very much aware of this trend, which is one of the reasons why we continue to invest in new capacity for the merchant market so that we can support its growth in Europe and globally.

European occupacity predicted to reach 90% in 2007
Based on our best view of supply and demand going forward we believe that European occupacity levels will reach in excess of 90% in 2007 and could reach 97% through the next two years.

Methacrylic Acid returns to balance after serious shortages.
Difficulties in the supply of MAA during 2006 were unusual. One European manufacturer experienced a long-term outage and others faced minor interruptions all of which resulted in restricted supply. Since then strong demand in Asia has continued to pull product from Europe and keep pricing firm. Demand for MAA continues to grow in the relatively new application area of construction chemicals but the more mature automotive coatings sector is flat. We view a balanced market for 2007, with the new MAA capacity in the USA supporting downstream growth.

All information or advice provided in this Article is intended to be general in nature and you should not rely on it in connection with the making of any decisions. Lucite International Limited and the companies within the Lucite International group of companies try to ensure that all information provided in this Article is correct at the time of inclusion but does not guarantee the accuracy of such information. Lucite International Limited and the companies within the Lucite International Limited group of companies are not liable for any action you may take as a result of relying on the information or advice within the Article nor for any loss or damage suffered by you arising therefrom.

‹ Back to Lucite Europe homepage | Back to top