Intro: Wanhua Chemical started the auction of 270 tons of domestic methacrylic acid sources at 10:00 on February 23, 2021, and the price was 21,100 yuan/ton of bulk water! This high auction price will also refresh history again, becoming the largest increase in domestic methacrylic acid market prices in history, with a single day increase of 4,600 CNY/ton (about 715USD/ton).
Boosted by factors such as high auction prices, the domestic methacrylic acid market spot offer high prices rose to 21,100-21,500 CNY/ton. The domestic methacrylic acid market price followed a new high in bulk water ex-factory quotations since 2017. The domestic market price of methacrylic acid showed a sharp increase at a high level, and the actual orders in the market remained high. The overall methacrylic acid market continues to rise at a high level. What is the reason behind the nearly crazy rise?
One of the main reasons is the shortage of domestic methacrylic acid spot supply.
At present, the overall domestic supply of methacrylic acid is tight, and the tightness is first reflected in the supply of acetone hydroalcohol, one of the domestic upstream raw materials for methacrylic acid. The domestic supply of acetone hydroalcohol is very tight recently. The acetone hydroalcohol production enterprises in Shandong have not officially put into operation so far. The acetone hydroalcohol production enterprises in the northeast mainly supply local methyl methacrylate production enterprises or mainly for their own use. The second quarter of 2021 There are still parking arrangements nearby. Acetone hydroalcohol-related production companies in East China also have plans for shutdown and maintenance near the second quarter of 2021.
In addition, due to frequent stops of domestic methacrylic acid manufacturers during the first quarter to the second quarter, the actual output of makers was low. The methacrylic acid plant of Jilin Sizhuang has not yet started up and running; Heze Huali 50,000 tons/year methacrylic acid and its ester plant will be shut down for maintenance from February 17 to early March 2021; Huayi Yuhuang 50,000 tons/year methacrylic acid and its ester equipment is scheduled to be shut down for maintenance for one month at the end of March 2021; Wanhua Chemical’s 50,000 tons/year methacrylic acid and its ester equipment is scheduled to be shut down for maintenance near the 20th in April 2021. Affected by these, the overall domestic supply of methacrylic acid is tight.
The second reason is that the domestic methacrylic acid downstream terminal demand orders are improving and the purchasing power is increasing.
Domestic methacrylic acid downstream resins, adhesives, and latexes have shown positive trends at the actual order level. Not only do they have more domestic orders for domestic terminals, but many downstream terminal manufacturers have also accepted more export orders at one time, and the overall order prices have shown a high rise. Therefore, the ability to receive orders for the high market price of raw material methacrylic acid has gradually increased .
In addition, due to the severe cold weather in the United States, local related methacrylic acid and its ester installations announced force majeure shutdowns or extremely low load operations. Although the extreme cold weather has gradually eased, many problems such as damage to petrochemical equipment caused by extreme cold weather may lead to a long road to restarting related methacrylic acid and its esters in the United States. Affected by this, the supply of methacrylic acid and its esters in Europe and the United States is severely in short supply, and the enthusiasm for purchasing in Asia is obvious, and the domestic export of methacrylic acid and its esters is also showing a positive trend.
Based on the above influencing factors: production companies stop for maintenance, overall orders for downstream terminals are good, and export inquiries are hot. The domestic methacrylic acid market will continue to reduce the source of imports, and the overall domestic social inventory may be low for a long time. The overall market price of methacrylic acid may continue to run at a high level, and it may continue to rise.
Please contact us for more information or inquiry. exp1@gzchem.com/ info@gcresin-paint.com 2021-2-24