How Methacrylic Acid Shortage and Increasing Demand in China Lead to Surge in Prices?
- 22-Mar-2023 4:24 PM
- Journalist: Jacob Kutchner
The number of empty containers was high in the Chinese market, with a decrease in Logistic Industry which dropped by 1.5% in March 2023, and the industry was flat in the region. Supply chain investors are optimistic in the coming months, indicating that the anticipated long-term growth rates in the industry will be higher than the historical growth.
The prices of Methacrylic Acid elevated in the Chinese market, with prices ranging at USD 1861/ton CFR Shanghai, as per ChemAnalyst Research Team Data as per the report on the first week of March 2023. Methacrylic Acid prices escalated due to an increase in the product supply and a slight shortage of shipments, and the increasing number of empty containers accumulating at Chinese ports indicates that the international market continues to have a positive outlook on China's ability to export goods.
The labor costs and rise in strong service Purchasing Manager Index data were reported to pressure the prices of Methacrylic Acid in China, which led to higher prices for the downstream product. Investor sentiments were up, which made them buy up enormous quantities of products in anticipation of future demand, and consumer preference for the purchase of the product was high in China.
The increased production cost of Methacrylic Acid elevated with an increase in China's Petroleum Engineering industry, up by 19%. The earnings for the petrochemical industry have grown, and the revenue generated by these industries is subsequently showing increasing profits, with more sales being reported by the Acrylates industry.
Storing containers in China is a more cost-effective option than storing them in Europe or the USA, and the increasing storage of containers at Chinese ports is a sensible way to secure global supply chains, especially since China remains the primary source of Methacrylic Acid production. The demand for Methacrylic Acid increased, lowering the stocks of finished products with the traders, as reported by the sources. The inventory of feedstock Meth Acrylamide Sulphate was also depleted and consumed for the manufacturing of Methacrylic Acid in the regional market.