MEK prices rebounded in the week to 29 October, reversing the decline of the previous period. Producers raised offers as selling pressure eased, with steady feedstock costs providing additional support. Buying, however, remained limited to immediate requirements — the rise was driven more by supply-side sentiment than by demand.
1. Key Focus Points This Week
- Producer offers edged higher.
- Plant operating rate remained stable.
- Downstream buyers sent inquiries and purchased against actual demand.
2. Market Review
Regional price comparison
| Product | Region | 29 Oct | 22 Oct | Change | Change rate |
|---|
| MEK | East China | 8,950 | 8,650 | +300 | 3.47% |
| MEK | South China | 9,200 | 8,950 | +250 | 2.79% |
Unit: CNY per tonne, Chinese domestic ex-works levels.
East China. Prices moved up within a narrow band of CNY 8,700–9,000/t. Producers faced lighter selling pressure and were less willing to release cargo at low prices. With feedstock still offering a cost floor, offer levels stepped steadily higher, and cargo holders turned more optimistic, lifting negotiated prices.
Downstream. End users bought only for rigid demand. Trading in low-priced cargo improved and physical deals picked up gradually, but acceptance of high prices stayed weak — there was little buying interest chasing the rally.
South China. The market rose in tandem. Intermediaries lifted offers following producers, yet downstream sentiment was muted. Transactions were mostly rigid-demand orders, and overall volume stayed thin.
3. Market Drivers
- Theoretical margin for the MEK sector averaged CNY -780/t this week — producers are still running at a loss.
- Operating rate of the MEK industry was 83.32%.
4. Outlook for Next Week
MEK prices are expected to fluctuate within a range. Three factors to monitor:
- Supply — several plants are scheduled to shut down, which will notably lower the industry operating rate. Ample spot stock at ports, however, means no cargo shortage for the time being.
- Demand — end users are still working down previously built inventory and show weak overall purchase intention; deals are mainly rigid-demand restocking. On exports, producers are focused on fulfilling existing orders while new business remains sluggish.
- Cost — C4 raffinate (mixed C4 after etherification) moved within a limited range, so cost support is weakening.
Overall, the MEK market is likely to stay range-bound in the near term. The development of demand needs close observation.
What This Means for Buyers
- This is a sentiment-led rebound, not a demand-led one. Offers rose because producers stopped discounting, not because buyers rushed in. Such rallies tend to stall once the immediate restocking is done.
- Planned shutdowns argue for covering near-term needs. If several units go offline as scheduled, the operating rate will drop visibly. Port stocks provide a buffer, but the forward supply picture is tighter than the current one.
- Downside is supported by negative margins. At a theoretical loss of CNY 780/t, producers have limited room to cut further — deep discounts are unlikely unless feedstock falls sharply.
- Compare like for like. The levels above are domestic ex-works in CNY; ask for a quotation against your specification, packaging and delivery point.
This report reflects market conditions at the time of publication and is provided for reference only. Prices change frequently — please contact us for a current quotation against your specification, volume and delivery point.
