Chinese Market To Witness Wane In Methyl Ethyl Ketone Price
- 02-Aug-2022 4:59 PM
- Journalist: Yage Kwon
Methyl Ethyl Ketone prices have been showcasing a negative price trend in the Chinese market. Bullish downstream demand and sinking upstream prices are the major factors supporting the price drop. In addition, the continuous trade deficit is another reason that affects the Methyl Ethyl Ketone market.
Chinese and other regional markets have been witnessing a negative price trend since the beginning of July 2022. On the back of geopolitical tension caused by the Russia-Ukraine war and the COVID resurgence, the growth of construction and other end-use sectors have been affected. The poor demand from the terminal side resulted in declining downstream production. Hence, the downstream manufacturer’s purchasing remained still in the domestic market. Moreover, the demand and supply for downstream paraffin wax, synthetic rubber, and other cleaning agents usher the Methyl Ethyl Ketone prices in a negative trend.
In the case of the upstream market, the upstream Liquified Petroleum Gas (LPG) values are weak due to the fall in the Crude oil market. LPG was sufficient in the domestic market as a result of feeble purchasing from the regional markets. Therefore, the atmosphere for trading was light, causing it difficult for the Methyl Ethyl Ketone prices to rise. As per our database, the LPG price declined by approximately 4%; thus, the Methyl Ethyl Ketone prices are falling following the upstream values.
Additionally, South Korea has been imposing a trade deficit consistently for the fourth month. The reduction in importation from China led to the pilling up of the product in the domestic market. However, to sell off the existing products, the manufacturers have been offering discounts, and the price of the exporting cargoes plunged. However, the aforementioned scenario effectively pulls down the Methyl Ethyl Ketone pricing.
As anticipated by the ChemAnalyst team, the market outlook for Methyl Ethyl Ketone is likely to remain weak. The upstream LPG market might continue to show a downtrend in the domestic market due to the sufficient availability of Crude. The consumption from the terminal end might stay slow, leading to a plummeting price trend of Methyl Ethyl Ketone.