MMA Market Moved Up on Tight Supply
Introduction: The Chinese MMA market moved up continuously recently on the tight supply. Up to March 9, 2018, market prices for MMA in East China were in the range of RMB 20,000-20,300/mt, up 2.56% week on week. Prices for MMA in South China were in the range of RMB 21,500-22,000/mt, up 3.85% week on week.
Inquiries in the market were hot. Downstream users in South China restarted intensely while the supply was limited. Prices started to move up. East China market saw the rapidest increases compared with South China and North China.
First, after the Lantern Festival , major downstream users of MMA back to the market and the demand for MMA was high.
Second, supported by the restrictions on imported goods in the back feeding market, the market share shrank. The supply became more limited. Middlemen held firm offers and the market prices increased rapidly.
Stimulated by the South China, some goods from East China entered the South China market. Players in East China were bullish about the market.
In North China, the operating rate of new units was lower than expected. Hongxu Chemical mainly supplied goods to its regular customers. Two units in Northeast China ran normally, and the supply was stable.
On the whole, the overall trading in the MMA market was active. Units running status will be the market focus. In early April, the unit at Huizhou MMA will undergo maintenance. The unit at PetroChina Jilin Petrochemical will undergo maintenance in May. In H1, 2018, the overall supply of MMA will continue to be tight. The bullish sentiments will continue to exist in the market.
Disclaimer: Echemi reserves the right of final explanation and revision for all the information.