Recently, the supply of low-priced methacrylic acid in the overall domestic methacrylic market has gradually decreased. As the auction prices of Wanhua Chemical’s methacrylic acid products continued to rise, the domestic brand methacrylic acid market quotation prices showed a trend of high consolidation and operation.
One of the reasons is that the cost of domestic methacrylic acid products has been stagnant recently, and some manufacturers are even in a state of loss.
In the early stage, the overall domestic methacrylic acid market trading atmosphere continued to be weak, and the trading atmosphere remained light. From the perspective of cost, the price of methacrylic acid products is even far lower than the market price of the related product methyl methacrylate. Moreover, the ultra-low price is close to the cost line, and even for some production enterprises, losses have already occurred. Affected by this, the domestic methacrylic acid production enterprises have an obvious intention to stabilize and rise.
The second reason is due to the low operating load rate of domestic methacrylic acid production enterprises recently.
Especially affected by the weather and approaching the Spring Festival holiday, methacrylic acid production enterprises in northern China have officially stopped this week. In addition, methacrylic acid plants in some areas are affected by the recent climate and some regulations, and the actual operating load rate of the market has shown a trend of low operation recently. Therefore, the overall social inventory of methacrylic acid in the domestic market still maintains the trend of sorting and running, and the market atmosphere of actual orders and shipments mostly maintains the downstream just-needed purchase operation.
The third reason is that due to the traditional Spring Festival holiday approaching, the domestic methacrylic acid downstream, especially the hydroxyethyl methacrylate industry, has a good enthusiasm for pre-holiday stocking and purchasing.
The important reason is that the traditional Spring Festival holiday is approaching, and the domestic downstream end users of methacrylic acid are related to the atmosphere of stocking and purchasing. As the traditional Spring Festival holiday is approaching, due to the fact that logistics will be blocked due to holiday problems in the later period, the domestic downstream terminal manufacturers of methacrylic acid recently, based on the requirements of reasonable purchase and stocking of their own safety stock, have carried out according to their own terminal customer orders and the actual situation of their own current inventory. Reasonable purchase of methacrylic acid raw materials.
To sum up, as the price of domestic methacrylic acid market had dropped to near the production cost line recently, the domestic methacrylic acid enterprises have obvious intention to stop falling. In addition, the weather and other factors have led to the actual low operating load of domestic production enterprises in the near future. What’s more, as the traditional Spring Festival holiday approaching, domestic methacrylic acid downstream terminal industry has recently carried out reasonable stocking and purchasing. Therefore, the domestic methacrylic acid market price has shown a sharp upward trend.