SunSirs: MEK Market in October Was Weak and Fell (October 1-26)
October 27 2022 14:15:08 SunSirs (John)
Price trend
According to the data monitoring of SunSirs, as of October 26, 2022, the domestic MEK market price reference was 8,800 RMB/ton, and compared with the price on October 1 (the MEK reference price was 9,900 RMB/ton), the average price decreased by 1,100 RMB/ton, or 11.11%.
Analysis review
It can be seen from the data monitoring chart of SunSirs that since October (10.1-10.26), the domestic MEK market as a whole showed a weak and declining trend. The influencing factors that caused the center of gravity of MEK to continuously lower were mainly from the following three aspects:
First, from the perspective of demand, after the National Day holiday, the downstream demand of MEK was cautious, and the pace of shipment was slow. Some MEK factories had accumulated stock. Insufficient demand led to pressure on the overall inventory on the market, and most of the operators began to make profits-cutting for shipment.
Second, from the perspective of cost, in October, the raw material raffinate-2 market operated in a narrow range, and the cost support given to MEK was also average. Therefore, the cost side was also difficult to support the firm offer of MEK.
Third, in terms of supply, in October, the overall operating rate of domestic MEK units remained at about 60%. This month, the operating rate was not adjusted much. However, due to the constraints of demand, the supply side was still under pressure to ship, which led to the continuous decline of the market focus.
As of October 26, the domestic market price of MEK was around 8,200-9,200 RMB/ton, with a large difference between high and low prices on the market, with a drop of about 800-1,500 RMB/ton compared with the price at the beginning of the month.
On the upstream side, from October 1 to 25, the domestic domestic LPG market in Shandong Province was in an overall volatile operation. According to the data monitoring of SunSirs, the reference price of LPG was 5,424 RMB/ton on October 25, a decrease of 0.59% compared with that on October 1 (the reference price of LPG was 5,456 RMB/ton).
Market outlook
At present, the trading atmosphere in the MEK market is still weak, the overall market remains weak, and the downstream demand side is boosted commonly. MEK mathematicians from SunSirs believe that in the short term, the MEK market is weak and sorted out mainly. The specific trend needs to pay more attention to the specific information changes on the supply and demand side
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.
