SunSirs: Under Demand Constraints, MEK Fell by 4.69% within Seven Days

Price trend

According to data monitoring by SunSirs, as of October 26, 2023, the domestic market price of MEK was set at 8,133 RMB/ton. Compared to October 19, 2023 (reference price of MEK was 8,533 RMB/ton), the price was reduced by 400 RMB/ton, a decrease of 4.69%.

Analysis review

From the data monitoring chart of SunSirs, it can be seen that after the end of the National Day holiday in October, the overall market situation of domestic MEK started to decline weakly. Entering this week, the overall decline in the MEK market had not stopped, and the price trend continued to move towards the low end. On October 26th, the domestic market price of MEK referred to 7,900-8,300 RMB/ton, and some low prices in Shandong region had dropped to around 7,700 RMB/ton. Within seven days, the price was reduced by about 300-400 RMB/ton.

Factors influencing the decline of MEK market after the holiday:

In terms of demand: As of the 26th, the overall performance of downstream demand for MEK was weak, and terminal procurement was cautious. The constraints on the demand side made it difficult to provide effective support to the MEK market. New orders for MEK on the market were limited, and the inquiry atmosphere was cold, with a bearish mentality on the market.

In terms of supply: After the holiday, the overall shipment of MEK was poor, and the pressure on on-site supply increased. The bearish sentiment gradually rose, and the actual transaction volume was less than expected. The overall negotiation of the MEK market declined, and the market eased and declined.

Market outlook

As of the 26th, the trading atmosphere on the domestic MEK market remained weak, with a strong wait-and-see atmosphere. There was no significant improvement in the demand side of downstream demand, and it’s heard that some downstream factories may have short-term parking and maintenance plans, providing support for MEK is also weak. The MEK data analyst of SunSirs believes that in the short term, the domestic MEK market will mostly adjust to be weaker, and the specific trend needs to pay more attention to specific news changes on the supply and demand side.

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