Price trend

The dichloromethane market fluctuated and weakened in November. According to the commodity market analysis system of SunSirs, as of November 30th, the price of bulk dichloromethane in Shandong Province was 2,505 RMB/ton, a decrease of 2.72% from the price of 2,575 RMB/ton at the beginning of the month. The high point of the month was 2,610 RMB/ton, and the low point was 2,410 RMB/ton. Due to the tight supply side in the early stage, prices remained strong. In the later stage, on the one hand, the raw materials support weakened, and on the other hand, the pressure on the supply and demand side further increased, resulting in a weak and downward trend in the dichloromethane market.

Analysis review

In the first half of November, the start-up of methane chloride plants was affected by the maintenance of some enterprise facilities, resulting in an overall decline. The lowest start-up rate in the first half of the month was around 62%; In the second half of the month, with the resumption of production of early maintenance equipment, the operating rate gradually increased to around 76%.

The cost support for dichloromethane in November was strong before and weak afterwards.

In November, the price of raw material methanol fluctuated and rose, while the price of liquid chlorine remained strong at the previous high level and significantly decreased at the end of the month. The cost support for dichloromethane weakened from strong to weak. According to the commodity market analysis system of SunSirs, as of November 30th, the spot price of methanol was 2,510 RMB/ton, an increase of 3.50% from 2,425 RMB/ton at the beginning of the month. The high point during the cycle was 2,520 RMB/ton, and the low point was 2,365 RMB/ton; At the end of November, the price of liquid chlorine in Shandong region was 300 RMB/ton, which was lower than the price of 600 RMB/ton at the beginning of the month.

Affected by the low starting point of equipment maintenance in the first half of the month, the supply of dichloromethane was tight, and the price of dichloromethane remained firm; In the second half of the month, on the one hand, the construction improved the recovery of the supply side, and on the other hand, the willingness of merchants to hoard goods was low. Downstream terminals only had support by rigid demand, and the inventory of methane chloride enterprises had slightly increased, leading to a decline in prices.

Market outlook

According to the methane chloride data analyst from SunSirs, as of the end of November, the cost of dichloromethane still had support, but the demand side was weak. Overall, it is expected that the dichloromethane market will continue to fluctuate and consolidate in the later period.

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