- Heavy turnarounds in China tightens MMA supply
- New MMA startups in China to add lengthy supply
Asian methyl methacrylate (MMA) CFR China marker rose $5/mt on the day and up $8/mt on the week at $1,228/mt on July 29, driven by the tighter supply in China due to on-going massive turnarounds and regains in the China domestic MMA prices.
In China, massive turnarounds continued, with around 700,000 mt/year of MMA plants heard to have idled in July, which accounts for about 26% of the total MMA capacity in the country.
Jiangsu Sailboat's 170,000 mt/year of MMA plant has shut in mid-July for about 15 day-long maintenance, while Shandong Yidali's 50,000 mt/year of MMA plant has been shut during the similar period for scheduled maintenance.
Heze Huali New Materials' 50,000 mt/year of MMA plant has been idled since mid-July for 10-to-15 days of turnaround, according to market sources.
On the back of the heavy maintenance, the domestic China MMA price slightly recovered with rising Yuan 8.33/mt, or 0.185% on thr week at Yuan 9,833.33/mt, which is equivalent to around $1,168.95/mt on an import parity basis. Nevertheless, the market sentiment in China remained sluggish.
"MMA [China] domestic market remains weak," an MMA trader based in North China said on July 29, adding that, there is a flurry of new MMA capacity coming on stream August onwards.
There were also oversupply concerns on the MMA market pressured by the new capacity additions.
As Platts reported, Zhejiang Rongsheng's new 90,000 mt/year of MMA plant has started its trial runs in early-July and will likely to begin the commercial operation in August, while around 350,000 mt/year of new MMA capacities are coming online in Shandong area in China in the second-half of this year.
The exact start-up details were not confirmed by the companies when contacted. Once all new MMA plants come on-line, the total MMA capacity in China will reach around 1.92 million mt/year, which accounts for around 45.42% of the total MMA capacity in Asia.
In Southeast Asia, CFR SEA MMA marker was unchanged over the same period at $1,275/mt, with no transparent indications were heard amid thin liquidity due to the long holiday in Japan.
On the shipping front, a 1,000-mt MMA cargo from South Korea arriving in China in the end-July was seen.
The downstream PMMA market is currently not good, which might have prompted the Korean MMA producers to sell the feedstock to China, a Chinese trader said on July 29.