Methyl Methacrylate

*Millions of pounds per year. Commercial production is by the reaction of acetone and hydrogen cyanide to form acetone cyanohydrin (ACH), which is further treated with sulfuric acid to produce methacrylamide sulfate. The sulfate is esterified with methanol to produce methyl methacrylate, with ammonium bisulfate as a byproduct. Other routes to MMA, which avoid the use of hydrogen cyanide or sulfuric acid, have been commercialized globally, but the ACH process is used by all three basic US producers.

In late 2003 Rohm and Haas began an expansion of their MMA unit at the Deer Park, Tex. plant. This new expansion will increase the site’s MMA production capacity by 250 million pounds per year increasing the total MMA output to approximately 1,040 million pounds per year. The Deer Park plant is the largest MMA producing plant in the world.

In May 2002, Ineos Acrylics Inc. changed its name to Lucite International, Inc. The business had preciously been acquired in October 1999 from Imperial Chemical Industries PLC (ICI). In 2001, Ineos increased MMA capacity at Beaumont, Tex. by 50 million pounds per year, raising the site’s total MMA capacity to 340 million pounds.

Profile last published 6/28/99; this revision, 3/1/04.

DEMAND

2002: 1,285 million pounds; 2003: 1,320 million pounds; 2007: 1,485 million pounds, projected. Demand equals production plus imports (2002: 14 million pounds; 2003: 26 million pounds) less exports (2002: 183 million pounds; 2003: 190 million pounds).

GROWTH

Historical (1998 - 2003): 1.3 percent per year; future: 3 percent per year through 2007.

PRICE

Historical (1998 - 2003): High, $0.75 per pound, contract, tanks, dlvd.; low, $0.41 per pound, same basis. Current: $0.72 per pound, same basis.

USES

Polymethylmethacrylate (acrylic) resins, 47 percent (cast and extruded sheet, 31 percent; molding powders and resins, 16 percent); surface coatings, 22 percent (latexes, 17 percent; other, 5 percent); impact modifiers, 13 percent; emulsion polymers, 8 percent; mineral-filled sheet, 8 percent; miscellaneous,2 percent.

STRENGTH

US consumption of MMA in acrylic sheet, molding and extrusion compounds, and surface coatings is affected strongly by construction and remodeling activity, as well as automobile production. These applications account for approximately 80 percent of MMA consumption, and demand for these markets is greatly influenced by general economic conditions. US demand for MMA rebounded in 2003 due to increased demand for polymethyl methacrylate (PMMA) from the construction industry, which continues into 2004. Housing starts in January were up 4.1 percent from one year ago. This is driven in part by the very low interest rates available for financing housing. Automobile production, however, has only been holding steady at best.

WEAKNESS

MMA took a 9 percent drop in demand between 2000 and 2001 as the economy shrunk, indicative of the substance’s economic sensitivity. Though new home construction and home improvement sectors are again robust, rising use of vinyl siding in home construction has slowed the growth of acrylic latex paints.

OUTLOOK

US demand for MMA is forecasted at 3 percent per year, through 2007. This is only slightly less than global demand growth which should do 3.5 percent annually. Resin and sheet demand will be driven by construction and household improvement uses, while surface coatings formulated with MMA will see market pull from architectural and automotive applications. New offshore capacity being built in Asia could adversely affect US exports, which have been growing steadily over the past four years.

HISTORICAL DATA