Price trend
This week (11.17-11.22), the rise of dichloromethane did not continue, with a slight decline. According to the Commodity Market Analysis System of SunSirs, as of November 22, the average price of bulk dichloromethane in Shandong Province was 2,960 RMB/ton, with a weekly decline of 6.92%.
Analysis review
In early November, with high prices, the market had light shipments and inventory was under pressure. Manufacturers considered the negative factors of weak demand and increased supply, and slightly lowered their quotations. As of November 22, the market shipment volume had improved, with on-demand procurement and some still holding a wait-and-see attitude. As of November 22, the ex factory price of mainstream dichloromethane in Shandong region was around 2,950-2,970 RMB/ton.
On the supply side: The equipment started to operate and rebounded within the week, resulting in an increase in on-site supply and pressure on inventory.
In terms of raw materials, the price of methanol in the market continued to rise, the market transaction atmosphere was hot, and the overall shipment of manufacturers was smooth in the early stage. As of November 21st, the spot price of methanol in SunSirs was 2,550 RMB/ton, an increase of 2.79% from the beginning of the month. The market for liquid chlorine in Shandong was on the rise, with increased confidence in business transactions and a stable bullish outlook.
In terms of demand, the market price of refrigerant R32 remained stable, and there was not much remaining annual quota. There will be a large-scale production reduction in December, and the demand for dichloromethane is limited. Other applications mostly maintained purchasing on demand and restocked at low prices.
Market outlook
The upward trend of raw materials supported the market, but the increase in supply put pressure on inventory, and the demand side had a strong willingness to buy at low prices. It is expected that the dichloromethane market will operate to be weaker in the short term.
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