The auction price of methacrylic acid on February 9, 2022 had increased by 1,800 CNY/ton compared with the auction price on January 18, 2022 (the last auction before the Spring Festival). With the landing of the first methacrylic acid market auction price after the Spring Festival holiday, the overall domestic methacrylic acid market has been “rising”, and the market price has skyrocketed compared with that before the Spring Festival.
The first reason is that the overall start-up load of domestic methacrylic acid plants has been low recently.
Recently, the overall operating load of domestic methacrylic acid plants has been operating at a low level, the actual social inventory has remained normally low, and the overall supply of spot goods has continued to be tight. ACH production process methacrylic acid manufacturers in Northeast China will be in a state of parking during the Spring Festival holiday from late January 2022 to mid-February 2022. Therefore, domestic methacrylic acid manufacturers in Northeast China actually sell more than pre-contract orders. Actual spot retail orders have limited availability for sale. In addition, domestic C4 production process methacrylic acid production enterprises all have the production capacity of relevant downstream supporting products. Therefore, during the Spring Festival holiday, the high-load production of methacrylic acid downstream products with higher profits is the main support. After the holiday, the supply of methacrylic acid for sale is limited, so the market price shows a high and soaring operation.
The second reason is that the recent domestic methacrylic acid downstream and export purchasing atmosphere continues to improve.
Recently, the overall domestic methacrylic acid market purchasing atmosphere has continued to be positive. In terms of foreign trade exports, the overall inquiry and purchasing atmosphere has maintained a positive and positive trend recently. Some manufacturers and import and export intermediaries have recently signed a lot of export contracts. supply order. Domestic methacrylic acid downstream terminal production enterprises, the overall order purchasing atmosphere also showed a positive trend. Due to the fact that before the Spring Festival, some domestic methacrylic acid downstream terminal manufacturers maintain low raw material inventory, so after the Spring Festival, the domestic methacrylic acid downstream terminal real orders just need to replenish the atmosphere showing a positive operation, and the market price continues to run at a high level.
The third reason is related to the rising market price of domestic methacrylic acid raw materials and the maintaining high market price of related products.
After the Spring Festival, the domestic methacrylic acid upstream crude oil market price continued to rise, so the raw material market prices showed a high upward trend, and the raw material cost rose at a high level, resulting in increasing cost pressure on domestic methacrylic acid production enterprises. In addition, the domestic methacrylic acid-related products, methyl methacrylate, the recent market price has also shown a trend of rising at a high level. The overall supply of spot goods is slightly tight, and the overall order atmosphere of production enterprises has maintained an orderly and upward movement. This also promotes the trading information of the overall domestic methacrylic acid market from a certain aspect, causing the domestic methacrylic acid market price to show a sharp surge.
To sum up, due to the low load of domestic methacrylic acid plants, the positive purchasing atmosphere at home and abroad, and the high cost of raw materials and the rise of related products, the domestic methacrylic acid market price showed a surge after the Spring Festival.