Supply: In terms of supply, upstream production remained stable compared to the previous period. The shortage of continuous crystalline products continued, resulting in a decrease in inventory.
Demand: Domestic: In terms of domestic demand, downstream consumption slightly increased compared to the previous period. Customers generally have a need to build up inventories for the Spring Festival production, and there is an increased enthusiasm among end-industrial customers to sign contracts for the Spring Festival season orders. International: In October, customs export data reached 64,000 tons, an increase of 19% compared to the same period last year. Consumption increased compared to the previous period, coupled with the rapid rebound of domestic signing prices, leading to active customer signings.
Upstream raw materials: Corn: This week, the mainstream price of corn in Northeast China increased by 10-20 yuan/ton. After the temperature dropped, farmers were reluctant to sell at low prices, resulting in limited supply at the grassroots level. As a result, corn purchase prices increased for deep-processing enterprises and northern port traders, driving up corn prices in Heilongjiang, Liaoning, Inner Mongolia, and other regions. It is estimated that there will be an expectation of price increases before and after the Spring Festival stage. Coal: Currently, coal inventories at ports continue to remain at high levels. There is still room for improvement in daily consumption by downstream power plants. It is possible that the inventory level of power plants may decrease as the operating rate increases, thereby supporting the demand for coal used in power generation. It is predicted that there is a possibility of relatively high-level operation in the future, but there should be caution about the risk of freight rate adjustments in the short term. Soda ash: Recently, domestic soda ash manufacturers have sufficient orders, and middle and downstream users have a high level of purchasing enthusiasm. The supply of goods remains tight. Soda ash manufacturers have smooth shipments, and the domestic soda ash market may continue to improve in the short term.
Industry sentiment: Domestic market: Downstream customers' inventories are at a medium-low level, and there is a general need for replenishment. The industry gradually sees a unified trend of rebounding from the temporary market decline, and prices enter an upward channel. International market: Downstream consumption remains stable, and influenced by the domestic market situation, prices are gradually increasing. Due to the longer delivery cycle compared to domestic sales, customer signings remain active.
Forecast for the future: The expectation of increased supply from upstream enterprises before the holiday has been delayed. Raw material costs form a fundamental support for monosodium glutamate prices. Both upstream and downstream inventories are relatively low. As we enter December, gradual Spring Festival stockpiling will begin, with evident demand for replenishment. It is expected that the monosodium glutamate market will continue to rise.