Easing Restrictions in China Propelling Methyl Ethyl Ketone Prices
- 03-Jun-2022 4:37 PM
- Journalist: Xiang Hong
According to a recent assessment, the prices of Methyl Ethyl Ketone (MEK) to rise this week. The enhancing export activities brought enthusiasm among the overseas and regional buyers. One of the major reasons to back up the price hike was surging crude prices.
COVID's revival in China since late March has had an impact on traders, as China's major port hub Shanghai was shut down. As a result, the purchasers have been motivated by the relaxation of lockdown limitations and port congestion. Methyl Ethyl Ketone has significantly increased export demand from the region and overseas markets. Moreover, the soothing transport restrictions and resumption of the domestic market led to healthy buying sentiments.
Furthermore, the upstream crude prices have been reviving since the demand from China increased. Coupled with freight charges, the import prices of the crude met a huge uptrend, which further inflicted the prices of Methyl Ethyl Ketone. As a result, the Methyl Ethyl Ketone prices surged approximately 7%, with an inclination of USD 106/ tonne from 27th May to 2nd June.
The use of Methyl Ethyl Ketone from the downstream coating, adhesive, and chemical intermediate sectors increased due to the increased production of these products. However, the increased downstream production activities and high demand from the end-use sectors influenced the Methyl Ethyl Ketone pricing. On the other hand, the limited supply and increased requirement of Methyl Ethyl Ketone also resulted in the upward price movement of the commodity.
When interviewed, one of the manufacturers said that the supply chain is expected to tighten as the entire market will be closed for the next three days on account of the Dragon boat festival.
According to the ChemAnalyst database, "The Methyl Ethyl Ketone prices might surge further in the coming days due to the tight supply chains. Also, the raw material prices are expected to rise, inflicting the Methyl Ethyl Ketone values. In addition, the limited availability of raw materials and increased demand from end use sectors might push up the Methyl Ethyl Ketone pricing."