Introduction: Although the domestic new coronavirus situation is severe recently, the price of my country’s domestic methacrylic acid market continues to move up, and the overall low-cost supply of goods in the market is difficult to find. The recent high market price pushed up, rising by 1450-1500CNY/ton (USD230) compared with the previous market price. So, what is the reason why the domestic methacrylic acid market price has shown a high rise under the background of the new coronavirus pneumonia epidemic in China?
First of all, under the recent severe situation of the new coronavirus pneumonia in China, logistics and traffic in some areas are not smooth, and the overall spot supply in the market is tight.
Due to the severe situation of the novel coronavirus pneumonia epidemic in China recently, some parts of the country, especially East China and Northeast China where the epidemic situation is relatively severe, have experienced poor overall logistics and prolonged logistics transaction time. In addition, due to the fact that some domestic methacrylic acid manufacturers are in areas with severe epidemic situation, the actual production operating rate has a certain impact. These factors lead to a slightly tight supply of domestic methacrylic acid spot level, so the market price shows a trend of rising at a high level.
Secondly, in April, some domestic methacrylic acid production enterprises planned to shut down for maintenance, and the actual operating load rate continued to decrease.
In April, domestic methacrylic acid production enterprises had a routine shutdown and maintenance plan. In addition, due to the recent epidemic situation, the operating load rate of major production enterprises was operating at a low level. Therefore, the overall supply of domestic methacrylic acid market in April is expected to be low, and the supply of spot goods in the market itself is low. In addition, the overall market supply in April is expected to be low, and the market is running at a high level.
Third, the overall domestic demand for methacrylic acid maintains a stable operation, and purchases more real orders to maintain their own just-needed positions.
The downstream of the domestic methacrylic acid market as a whole has maintained a trend of consolidation and operation. The overall level of demand is stable, and the middlemen have sufficient confidence in the domestic methacrylic acid market outlook. Affected by this, the domestic methacrylic acid market price has shown a high trend recently.
To sum up: under the severe situation of the recent domestic emerging coronavirus pneumonia, the overall domestic methacrylic acid market in my country has shown a high-level upward trend, mainly due to the recent domestic logistics constraints, and the partial start-up load of some methacrylic acid production enterprises. Low, so the actual supply level is tight. In addition, in April, some domestic methacrylic acid production enterprises have planned to stop and repair, and the domestic long-term supply level has not been significantly abundant, and the actual demand side of downstream terminal production enterprises has maintained a stable operation. Based on the above situation, domestic methacrylic acid manufacturers and distributors are optimistic about the future trend of the domestic methacrylic acid market. Therefore, the overall domestic methacrylic acid market has maintained a high and upward trend recently. It is recommended to operate in a short period of time, until the guidance on the news will be clarified. (source: JLC)