Price trend

This week (3.1-3.7), the overall operation of dichloromethane in Shandong was temporarily stable. According to the Commodity Market Analysis System of SunSirs, on March 7th, the average price of dichloromethane water in Shandong Province was 2,545 RMB/ton, with a weekly increase of 0.59% and an annual increase of 17.28%.

Analysis review

Recently, the dichloromethane market in Shandong has been running steadily after its rise, but downstream demand follow-up was somewhat weak. In addition, weather factors have slowed down the pace of enterprise shipments, leading to an increase in inventory levels. Under the pressure of shipment, the market cannot rule out the possibility of bidding sales. However, there were reports that some companies were planning maintenance of their equipment, which may have a certain impact on the supply side, providing some support for market sentiment. On March 7th, the ex factory price of mainstream dichloromethane in Shandong region was around 2,480-2,530 RMB/ton.

Supply side: The device has started and was running steadily. It is reported that some enterprises have maintenance plans for their devices and need to pay attention to future changes.

Cost side: The domestic methanol market was experiencing strong fluctuations. The methanol market was mainly driven by downstream olefin inquiries and external mining, as well as the shutdown of some facilities, resulting in a stronger market trend. On March 7th, the spot price of methanol at SunSirs was 2,669.17 RMB/ton, an increase of 1.52% from the beginning of the week. During the week, the overall liquid chlorine market in Shandong has been on the rise. As of March 7th, downstream epoxy propane companies have suspended receiving goods due to insufficient demand follow-up.

Demand side: Downstream was gradually recovering, with more emphasis on maintaining essential procurement. In terms of refrigerants, with the stimulus of trade in and the arrival of peak season, the production of household air conditioners in March and April increased significantly year-on-year. It is expected that refrigerant R32 will continue to maintain a stable upward trend, which may drive the rise of dichloromethane.

Market outlook

SunSirs’ analysts believe that with strong raw material support and slow recovery in demand, there may be changes in the supply side. It is expected that the domestic dichloromethane market will maintain a stable and narrow adjustment trend.

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