MMA: The focus of market rises in early July

Since July, the overall domestic methyl methacrylate market has shown a trend of tight supply. The real-order spot supply in the market has been slightly tight in the near future. In addition, the demand level of downstream terminal manufacturers has gradually recovered, and the demand level atmosphere has continued to increase. Good, the market’s real single offers have continued to rise. The market’s overall real-order negotiation focuses on the high-end, continuing the trend of high-level finishing operations.

In June, domestic methyl methacrylate manufacturers concentrated on parking and maintenance, and the overall operating load rate remained low. Huiling Chemical’s 90,000-ton/year methyl methacrylate plant was shut down for maintenance from early May to late June; Heilongjiang Longxin’s 75,000-ton/year methyl methacrylate plant shut down for maintenance from June to early July; Jilin Petrochemical 20 The 10,000-ton/year methyl methacrylate plant was shut down for maintenance from June 1 to July 20; the 170,000-ton/year methyl methacrylate plant in Sierbang, Jiangsu Province, one of which produced 85,000 tons/year of methyl methacrylate The ester production unit was shut down for maintenance from June 1 to June 10; Qixiang Tengda’s 200,000 tons/year methacrylic acid and its esters installations, one of which was a 100,000 tons/year methacrylic acid and its esters installation in 6 From 4th to June 19th, it was shut down for maintenance; Shanghai Roma’s 100,000-ton/year methyl methacrylate plant was shut down for maintenance from June 12th to June 23rd. Affected by the above-mentioned domestic methacrylic acid and its ester equipment shutdown and maintenance, domestic methyl methacrylate from June to early July, the domestic overall domestic methyl methacrylate social inventory may remain at a normal low level.

Due to factors such as transportation of hazardous chemicals and cargo handling in some areas at the end of June, some downstream terminal manufacturers failed to replenish their own raw material inventory. In July, some downstream manufacturers, due to their low raw material inventory, made overall inquiries and purchases. The atmosphere continues to run positively, and there is a strong intention to cover up positions in real orders.

In addition, due to the gradual spread of the new coronavirus pneumonia epidemic in India, since May 2021, the epidemic situation in Southeast Asia has gradually worsened, especially in Indonesia, Thailand, Malaysia, Vietnam and other places related confirmed cases once showed a sharp increase trend. Southeast Asia and other places, especially Vietnam and other countries and regions have always been labor-intensive industrial areas. Due to the impact of the new coronavirus pneumonia epidemic, some production plants in relevant areas have temporarily reduced load or even closed. Therefore, relevant export orders in relevant areas have been shelved or Unable to accept status. Affected by this, related foreign trade orders from Europe, America and Northeast Asia began to be transferred to my country more. The situation of foreign trade orders such as methyl methacrylate is no exception, and the actual foreign trade order atmosphere is gradually increasing.

Many domestic manufacturers of methyl methacrylate have directly established long-term foreign trade order contracts with large-scale foreign downstream terminal manufacturers or foreign large-scale middlemen. The related production of methyl methacrylate products, in addition to supplying domestic contract users, has a certain volume of export plans every month. Therefore, domestic methyl methacrylate manufacturers entered the first ten days of July, and the overall shipment pressure was relatively small, and social inventories remained at a normal low level.

In summary, the overall social inventory of domestic methyl methacrylate was normally low in early July, domestic downstream end users just needed to cover their positions, and the export performance was positive. Due to the three factors, the overall spot supply of the market may remain biased temporarily. The focus of actual negotiations on tight and market offers may show a trend of gradual maintenance and upward movement. However, as the methyl methacrylate production companies that stopped for maintenance in the later June resume production and operation, the tight supply level may be relieved, and there will be new domestic methyl methacrylate constructions from the third quarter to the fourth quarter of 2021. Production capacity is expected, so short-term trading is recommended, pending clear guidance on the news.