Price trend

According to the Commodity Market Analysis System of SunSirs, at the end of February, the average price of bulk dichloromethane in Shandong Province was 2,530 RMB/ton, with a monthly increase of 2.64%. On February 13th, it rose to a monthly high of 2,572 RMB/ton, an increase of 4.36% from the beginning of the month; On February 22nd, it fell to a monthly low of 2,410 RMB/ton, a decrease of 2.23% from the beginning of the month.

Analysis review

The overall range of dichloromethane market fluctuated in February. There was a slight fluctuation in the operation of domestic methane chloride plants, and the supply of dichloromethane was relatively stable; In February, the price of methanol, a raw material for dichloromethane, weakened, while the price of liquid chlorine slightly increased, resulting in weak overall cost support; Before the Spring Festival, there was a significant destocking of dichloromethane enterprises, and after the holiday, enterprises raised their prices and offered to buy. However, downstream production was low after the holiday, and demand for dichloromethane at the end of the month was light. The inventory of dichloromethane enterprises was under pressure, and they lowered prices and shipped goods. As of February 28th, inventory has eased, and with the addition of enterprise equipment load reduction plans, prices gradually rebounded at the end of the month.

In terms of supply, there was a narrow fluctuation in the start-up of domestic methane chloride plants in February, with a start-up rate of around 70%. In March, some enterprise plants will operate with reduced load.

In terms of raw materials, the domestic methanol supply has slightly decreased, and the methanol market has experienced narrow fluctuations and adjustments. The upcoming spring inspection was about to begin, and the supply and demand pattern in mainland China is expected to continue to improve. As of February 28th, the spot price of methanol in SunSirs was 2,634.17 RMB/ton, a decrease of 0.06% from the beginning of the month. The price of liquid chlorine in Shandong was relatively low, and market transactions have increased within the month. There was an expectation of an increase in liquid chlorine exports.

On the demand side, downstream industry demand was gradually improving. Leading refrigerant companies raised their prices for various product models by 1,000-2,000 RMB/ton on the 26th. The export of household appliances remained unchanged and the domestic trade in policy continued to stimulate demand. The production and scheduling of air conditioners in March continued to grow steadily, with R32 operating steadily, moderately, and strongly.

Market outlook

SunSirs’ analysts believe that the expected improvement in raw material supply and demand was positive, and the expected decrease in the supply of dichloromethane units due to load reduction was decreasing. The refrigerant market continued to rise, and demand was gradually improving. It is expected that the overall dichloromethane market will operate positively in March.

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