According to the Voice of Economy “Trading Live” report, recently the price of MSG has rocketed, and it has also driven many A-share listed companies to perform. Haofeng Group's MSG prices have risen from 7,300 yuan/ton on July 15 to 7,600 yuan/ton on July 15, and have risen to 7,900 yuan/ton on July 25. On July 31, the price of plum monosodium glutamate was 8,600 yuan/ton, and Ningxia Yipin even reported 8800-9000 yuan/ton. In half a month's time, the price of monosodium glutamate rose rapidly from 7300 to 8000 and 9000. The price of monosodium glutamate once rose more than expected. What is the reason? Zhu Yingying, analyst of Zhuo Chuang Information Industry, made an analysis of this.

Chen Yingying: One of the main reasons why manufacturers actively increase prices is that funds have certain pressure. In May and June, the upstream market manufacturers to speed up the industry reshuffle, compete for the market, the implementation of the price war. However, due to the limited market demand and excess capacity this year, the price war has limited influence. So although some small and medium-sized manufacturers are unable to start work again, large companies also suffer serious losses. Second, September and October are traditional peak seasons, which will bring about a certain degree of market digestion. Thirdly, the price of corn, one of the main raw materials for MSG, has been at a high level this year, and raw material prices have continued to rise, which has caused manufacturers' profits to be compressed. Fourth, the outdated output capacity of MSG from the Ministry of Industry and Information Technology is relatively high. This year's target is 285,000 tons, which is an increase of about 142,000 tons compared with 2012, an increase of 99.3%.

Therefore, although the price of MSG has been rocketing in the recent past, there is a certain gap in the actual transaction price. The phenomenon of such high reported losses is relatively common in the industry.