SunSirs: Poor Demand Support, MEK Market Ended with a Decline in March

Price trend

According to data monitoring by SunSirs, as of March 31, 2024, the domestic market price of MEK was referenced at 7,966 RMB/ton. Compared with March 1, 2024 (reference price of MEK was 8,233 RMB/ton), the price decreased by 267 RMB/ton, a decrease of 3.24%.

In March, the MEK market can be described as "slightly warm but still cold". At the beginning of March, although there was a brief upward trend in the MEK market, the overall effective support of the market was insufficient. Starting from mid to late March, the MEK market began a weak downward trend, and by the end of the month, the MEK market had ended with a weak decline. As of March 31st, the domestic market price of MEK was around 7,700-8,300 RMB/ton, with a decrease of about 100-300 RMB/ton during the month.

Analysis of Factors Influencing the March MEK Market

In terms of supply: At the beginning of the month, the overall on-site supply of MEK was tight, with low operating rates and low inventory in MEK factories. In addition, some MEK factories delivered export orders, resulting in lower overall supply pressure. Therefore, at the beginning of the month, both the supply side and the export side provided some upward support to the market.

In terms of demand: In March, the overall performance of the domestic demand market for MEK remained average, with downstream purchases continuing to be the main focus. After the export order support gradually weakened at the beginning of the month, the drag of demand on the market for MEK gradually emerged. Due to the continued weak demand, supply pressure also came. Therefore, in the middle and late stages, due to demand pressure, the focus of negotiations in the MEK market continued to decline.

Market outlook

As of the end of March, the overall trading atmosphere in the MEK market was quiet, and the market must have a clear wait-and-see view. Downstream stocking and replenishment still showed caution. SunSirs’ MEK data analysts believe that in the short term, the domestic MEK market will mainly adjust within a range, and the specific trend still needs to pay more attention to specific news changes on the supply and demand side.

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