USES

Polymethyl methacrylate (PMMA) is the most important application for methyl methacrylate (MMA), consuming about half of Asia’s MMA output. It is an economical alternative to polycarbonate (PC) when extreme strength is not required. PMMA comes mainly in two grades – general purpose (GP) and optical grade. GP-grade PMMA is widely used in many industries and in a large number of everyday/ household applications, such as souvenirs, illuminated signs and bathtubs. Its automotive applications include car tail lights and speedometer covers. Optical-grade PMMA is used to make TV screens for large LED (light emitting diode) TVs, light guide panels and computer monitors. It is also found in application screens for smaller electronics items such as mobile phones, and MP3 and media players.

SUPPLY/DEMAND

PMMA supply has stayed tight in Asia throughout 2017, on the back of prolonged supply shortage, high upstream costs, as well as multiple plant outages and scheduled turnarounds in the region. Spot trade for bulk cargoes slowly reduced, as most producers had low inventories and could not offer much spot material on the market. Other disruptions such as Hurricane Harvey in the US caused global spot supply to further constrict in 2017. Price hikes were initiated by key manufacturers such as Sumitomo and Chimei, in order to reflect strong MMA costs and maintain PMMA production levels. De
mand for PMMA remained mostly steady for general purpose and optical grades, in view of limited spot supply and rising spot prices. PMMA buyers were largely heard to be under growing pressure, being unable to pass on such strong costs to their customers quickly. As such, most held a cautious approach, purchasing small amounts to fulfil business obligations. China and India are among countries that are net importers of PMMA.

PRICES

PMMA spot prices have been on the rise since early 2017, tracking upstream MMA prices closely. In October 2017, PMMA prices climbed to a one-year high at $2,630/tonne CFR (cost and freight) China and $2,630/tonne CFR SE (southeast) Asia, rising by 45% and 36% on a year-on-year basis, respectively. Feedstock MMA prices were on an uptrend in the same period, amid tight supply and various plant disruptions. Spot prices increased by 40% yearon-year, closing at $2,610/tonne CFR SE Asia in October 2017. The spread between PMMA and upstream MMA prices climbed above the zero mark in October 2017 and reached a positive level for the first time since March 2017.

TECHNOLOGY

Chemically, PMMA is the synthetic polymer of MMA. PMMA is routinely produced by emulsion polymerisation, solution polymerisation, suspension polymerisation and bulk polymerisation. For glazing, some MMA can be pre-polymerised in a continuous stirred tank reactor and the resulting viscous liquid is fed into a series of flat glass plate-like moulds. This type of batch operation is cumbersome, so continuous polymerisation/cast technologies are also in operation. In belt polymerisation processes, the MMA/PMMA syrup is injected between continuous highly polished metal belts. Continuous and batch processes are also possible. Japan’s Mitsubishi Rayon developed a recycling process that produces MMA monomer from waste PMMA using sand as a thermal catalyst. It then produces PMMA from the monomer.

OUTLOOK

The market outlook will largely depend on the availability and costs of feedstock MMA, as well as whether PMMA supply in Asia sig
nificantly eases in the near term. With new Middle East plants set to come on stream, most players believe regional supply will increase. One addition is the joint venture between Mitsubishi Rayon and SABIC, which involves an integrated 40,000 tonne/year PMMA plant and a 250,000 tonne/year MMA plant in Saudi Arabia. However, production may be delayed as some facility issues were heard in late Q3 2017. A new 90,000 tonne/year project is on the horizon in Saudi Arabia. The Petro Rabigh venture between Sumitomo and Saudi Aramco is expected to come on stream in early 2018. Assuming no further disruptions, existing sellers affected by recent planned and unplanned shutdowns would be able to build up production and inventory levels gradually. PMMA demand is expected to remain restricted until buyers see that regional supply is more abundant and spot prices are softer.