SunSirs: Under Cost Support, the MEK Market Rebounded After a Decline

Price trend

According to data monitoring by SunSirs, as of November 10, 2023, the domestic market price of MEK was referenced at 7,600 RMB/ton. Compared with November 7, 2023 (reference price of MEK was 7,566 RMB/ton), the price increased by 34 RMB/ton, an increase of 0.44%. Compared to November 1st (the reference price of MEK was 8,100 RMB/ton), the price was reduced by 500 RMB/ton, a decrease of 6.17%.

Analysis review

From the data monitoring chart of SunSirs, it can be seen that in the first week of November, the domestic MEK market overall showed a broad decline, with insufficient effective support on the market. Under the pressure of bearish sentiment, the MEK market continued to decline. On November 7th, the MEK market price referred to 7,566 RMB/ton, a 6.58% drop within seven days.

Two days after the low level consolidation of the MEK market, as the carbon tetrachloride market in the raw material end stopped falling and continued to move towards a high level, the support for MEK from cost gradually increased. On the 9th, the MEK market started to rise in a narrow range with the trend of raw materials, but due to the constraints of the demand side, the MEK market did not rise significantly, with an overall increase of around 100 RMB/ton. As of the 10th, the domestic MEK market price reference was around 7,400-7,800 RMB/ton, although the market had slightly increased, but compared to the beginning of the month, the market was still at a low level.

Market outlook

The trading atmosphere on the MEK exchange was still relatively cold, and the buying and inquiry atmosphere was still light. The overall downstream demand was average, and the support for MEK from the demand side was still limited. As of November 10, there were signs of a slight decline in the rise of the raw material side, and the long-term support for MEK may loosen. The MEK data analyst of SunSirs believes that in the short term, the domestic MEK market will mostly operate with narrow fluctuations, the specific trend still needs to pay more attention to the specific news changes on the supply and demand side.

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