Price trend

This week (1.11-1.17), the dichloromethane market was running to be weaker. According to the Commodity Market Analysis System of SunSirs, on January 17th, the average price of bulk dichloromethane in Shandong Province was 2,675 RMB/ton, with a weekly decline of 5.39%; On January 14th, the average price reached a low point of 2,662 RMB/ton this week, a decrease of 7.25% from the 11th.

Analysis review

As the Spring Festival approaching, downstream demand has significantly weakened, on-site operating load has increased, and enterprise inventory was under significant pressure. Production enterprises were offering discounts for sales, resulting in a wide range of price reductions. Downstream order taking enthusiasm has increased, but due to the reduction of logistics vehicles, enterprise outbound has slowed down, which may pose an upward resistance to dichloromethane. On January 17th, the ex factory price of mainstream dichloromethane in Shandong region was around 2,640-2,680 RMB/ton.

Supply side: The starting load this week remained stable compared to last week.

Cost wise: As the end of the year approaching, shipments of methanol and liquid chlorine were under pressure. The liquid chlorine market was declining, and the methanol market was fluctuating and weakening. On January 16th, the spot price of methanol in SunSirs was 2,710 RMB/ton, a decrease of 1.75% from the beginning of the month.

Demand side: Due to factors such as low production in various industries before the Spring Festival and holiday arrangements, the demand for procurement has weakened. The operating rate of the refrigerant industry was low, and the tight supply of goods supports the firm operation of prices, waiting for resumption of work and production after the Spring Festival.

Market outlook

SunSirs’ analysts believe that the cost situation is weak, the demand side has reduced production, and the supply side inventory is under pressure. It is expected that the upward space for for dichloromethane market will be limited in the short term.

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