Introduction
Recently, the overall domestic methacrylic acid supply level has shown a tight operation trend, and the overall market offer price has shown a high upward trend. The mainstream offer price of the domestic methacrylic acid market remains at 16,800-17500 yuan/ton, and low-end sources are difficult to find. In the short-term, the domestic methacrylic acid market price may show a high level of consolidation expectations. So what is the reason for the recent high price of methacrylic acid in the domestic market?
One of the reasons why the domestic methacrylic acid market price has shown a high level of consolidation recently is due to the recent tight overall supply level of the domestic methacrylic acid market.
Since April, the overall domestic methacrylic acid market has shown a low operating load. In April, Huayi Yuhuang’s 50,000-ton/year methacrylic acid and its ester plant shut down for 30 days, and Wanhua Chemical’s 50,000-ton/year methacrylic acid and its ester plant shut down for 30 days. The operating load rates of other production enterprises have maintained normal operation. Therefore, in general, the overall domestic methacrylic acid market has recently shown a low operating load rate, and the overall social inventory of the market is low. The market offer price continues to maintain a high operation, and low-priced supplies are scarce.
The second reason is that the domestic methacrylic acid has performed better at the export level and the import supply is scarce.
Recently, the export level of methacrylic acid has performed well, and the purchasing atmosphere of real orders has maintained a good trend. The overall export negotiation atmosphere of some domestic methacrylic acid manufacturers continues to be hot, and the real order transaction price at the export level is much higher than that in China. With the actual sales price and the active negotiation atmosphere, some domestic methacrylic acid manufacturers have reported that the single spot supply continues to be tight, and the offer price continues to rise. Since the recent international methacrylic acid market price is much higher than the domestic methacrylic acid market price, the recent supply of imported methacrylic acid market is relatively small.
Third reason is that the downstream terminal demand of domestic methacrylic acid has gradually recovered to a good operation.
Recently, the demand level of domestic methacrylic acid downstream terminals has also shown a continued upward trend, and the acceptance of the purchase atmosphere of real orders has been significantly boosted than before. The market real order purchase and inquiry atmosphere maintained a positive trend, and the prices of downstream end products have also been rising along with the market prices of raw materials.
The fourth reason is that the price of methacrylic acid raw materials in China has maintained its finishing operation recently.
Recently, the price of raw materials in the domestic methacrylic acid market has also shown a trend of high-level operation. Taking the domestic market price of isobutylene, a raw material of the C4 process route, as an example, the market price has hovered at 9500 yuan/ton or above, and the domestic acetone market price has also shown a high-level operation trend. Low-end offers in the market are rarely heard. Under the support of the cost of raw materials, the domestic methacrylic acid market price will also show a high upward trend in the near future.
In addition, according to information from the Propaganda Department of the Anda Municipal Party Committee, at about 2:30 pm on April 21, four workers from Heilongjiang Kailunda Technology Co., Ltd. in Anda City were poisoned one after another when they stopped production and repaired the gas kettle in the Probenazine production workshop. The rescue failed, and the other 6 people suffered poisoning reactions during the rescue. After treatment, their lives are no longer in danger and their condition is stable. After monitoring by environmental protection agencies, there is no impact on the surrounding environment. Cause of the accident is under further investigation. Due to the impact of the incident, it cannot be ruled out that it will have a certain impact on the production enterprises in the relevant regions. The specific situation will be further followed up.
To sum up, it is expected that the domestic methacrylic acid market price may maintain a high level of consolidation in the near future, and the expectation of the market transaction center to rise. It is recommended to trade in a short-term, pending clear guidance on the news.