Price trend

In January, the domestic MIBK market experienced a significant decline. According to the Commodity Analysis System of SunSirs, the market quoted a price of 15,033 RMB/ton on January 1st, but dropped to 13,666 RMB/ton on January 31st, a decrease of 9.09% for the month.

Analysis review

In early January, the 50,000 ton/year MIBK unit of Ningbo Juhua and the 20,000 ton/year unit of Zhenyang in Zhejiang were both shut down for maintenance on January 4th. Due to the tight availability of spot resources, traders pushed up their offers. In late January, with lower acceptance of high priced MIBK by downstream and intermediaries, a weak buying atmosphere, coupled with insufficient confidence in the future market, traders increased their enthusiasm for shipping, and prices gradually declined.

The raw material acetone market had risen narrowly. As of January 31st, the negotiated price of acetone in the East China region was between 6,950-7,000 RMB/ton. As the holiday approaching, the trading atmosphere in the market was average. At the beginning of the month, due to the shortage of port supply, domestic factories were still in a loss making state, and traders were firm in their offers. After the market surged, with insufficient downstream demand support, the market quickly fell and transactions were flat.

From a terminal perspective, the intention to purchase large orders had decreased, and the demand was mostly for small orders to follow up. Large enterprises entered the market with caution and tended to operate targeted contracts, but traders were holding onto the market and reluctant to sell, resulting in a significant increase in small order prices.

Market outlook

It is expected that the weakly volatile operation will be the main trend in February. As the spring break approaching, the trading enthusiasm of manufacturers in the market was not high. Factories mainly delivered orders, and inventory pressure was not high. It is expected that factory inventory may rise during the Spring Festival period, and downstream replenishment on demand will be the main trend after the holiday. There may be a slight increase but the cycle is relatively short. After the holiday, attention should be paid to the resumption of downstream work and the production of new equipment in Anhui.

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