When you ask suppliers for MEK quotes today, you might feel confused. What exactly is happening in the MEK market? Why is it suddenly so expensive? Some quotes are now only valid for a few hours. As a buyer, how can you protect your interests?
As an MEK supplier, I am here to give you the answers.
War is the “Root of the Trouble”
Tensions in the Middle East make crude oil prices highly unpredictable. Over the past month, C4 prices have skyrocketed. This directly caused MTBE (the main raw material for MEK) to surge by more than 30%.
In China, the MEK spot price jumped from 7,050 RMB/ton in early March straight to 13,900 RMB/ton. Prices are sky-high, but actual stock is very rare. Nobody can predict tomorrow’s price.
Unknown Arrival Times
You might accept a price increase just to avoid running out of stock. But as of today, European buyers have pushed the FOB Rotterdam spot price to $3,227/ton (up 64%). Fortunately, China’s MEK spot market is still stable. It held around $1,600/ton through the end of March.
However, your cargo will be late. Rerouting vessels around the Cape of Good Hope adds 10 to 15 days to the trip. When will the Strait of Hormuz unblock? We can only guess. Maybe tomorrow. Maybe June.
How to Protect Your Interests?
As a Chinese raw material supplier, here is our sincere advice: Build up your safety stock early. Lock in today’s price before ocean freight and raw material costs jump again.
After all, the Middle East situation is too hard to predict. Relying on “Just-In-Time” delivery right now brings massive risks to your profits.
Why Choose Us?
When the market changes wildly, you need a supplier with real physical facilities. You do not just need a trader.
- Abundant Spot Stock: We have over 10,000m³ of physical storage tanks. They are fully loaded with spot stock. This will instantly relieve your supply problems.
- Ready to Load Anytime: Do you need bulk orders or an urgent spot fill? We are ready to ship at any time.
- Priority Shipping: We have deep partnerships in ocean logistics. This is how we guarantee your cargo arrives on time.
Dear customer, we truly hope these “objective factors” will not hurt your profits.