Introduction: Recently, the overall domestic methyl methacrylate market has shown a tight supply level in terms of spot supply. Downstream end users are more cautious in receiving real orders, and they mainly need to cover their productions. The real order purchase level in the market is slightly stalemate. The market price is running at a high level of 13700-14000 yuan / ton, and the overall transaction center of the market is multi-directional high-end operation. So, what is the reason why the domestic market price of methyl methacrylate is still rising against the trend recently under the emerging coronavirus pneumonia epidemic?
First of all, the overall operating load of domestic methyl methacrylate production enterprises is relatively low recently.
Jilin Petrochemical’s 200,000-ton/year methyl methacrylate plant, due to the impact of the local epidemic, the transportation time of relevant raw materials for some manufacturers has been prolonged, or it is difficult to arrive at the agreed time. Therefore, the overall domestic methyl methacrylate market has been confirmed recently The operating load rate showed a trend of low operation. In addition, Shandong Hongxu methyl methacrylate plant was also affected by the shutdown of upstream production enterprises on the 45th, and announced that it will stop near the end of March.
As the overall starting load of domestic methyl methacrylate production enterprises maintains a low load operation, the overall spot supply of the domestic methyl methacrylate market has not been significantly abundant recently, and the market price has shown a high trend of pushing up.
Secondly, logistics in some areas with severe emerging coronavirus epidemics are limited, resulting in a lack of overall spot supply in the market.
Since March, the situation of the domestic emerging coronavirus pneumonia has been extremely severe, and logistics transactions in some domestic epidemic areas have been restricted as a whole. Therefore, to a certain extent, the logistics time between various regions has continued to lengthen, which has led to the overall regional market in each region. Spot inventories remained low and the supply of goods was relatively small. Under the background of less supply of goods, the stockholders at the overall trading level of the market mostly maintained high-level and upward offers, and it was difficult to find low-priced goods in the market. Under the background of poor logistics and traffic, the inventory of raw materials for downstream end users is low, and the upstream production enterprises have less pressure on actual shipments due to their low operating load rate and the normal operation of the overall transaction in the production area.
Third, the actual production and operation of downstream terminal production enterprises in some parts of the country are normal.
Recently, the overall domestic market price of methyl methacrylate has shown a trend of rising at a high level. Although the emerging coronavirus pneumonia epidemic is severe, the actual operating load rate of some domestic downstream terminal manufacturers of methyl methacrylate has remained stable and smooth, and the market is buying more with real orders. Maintain just need to cover positions. Although the overall market trading atmosphere remained stable due to factors such as logistics, the actual purchasing atmosphere still maintained a stable and positive development. Therefore, the market price trading center of gravity rose.
To sum up: the overall domestic market price of methyl methacrylate has been rising against the trend recently, which is mainly due to the overall low start-up load of domestic methyl methacrylate production enterprises recently. It is related to the fact that downstream terminal manufacturers of methyl methacrylate maintain their just-needed purchasing strategy. It is recommended to trade in a short-term, pending the clear guidance on the news. (Source: JLC)