Price trend

This week (3.8-3.14), Shandong dichloromethane first fell and then rose, with fluctuations consolidating. According to the Commodity Market Analysis System of SunSirs, on March 14th, the average price of bulk dichloromethane in Shandong Province was 2,520 RMB/ton, with a weekly decline of 0.98%.

Analysis review

At the beginning of the week, dichloromethane companies in the Shandong market experienced a slowdown in shipments and an increase in inventory. Under the pressure of shipment, companies have reduced prices and promoted sales, which has eased inventory pressure. At the same time, the news of planned maintenance of enterprise equipment has triggered market sentiment fluctuations, creating a strong upward atmosphere in the region. On March 14th, the ex factory price of mainstream dichloromethane in Shandong region was around 2,450-2,520 RMB/ton.

Supply side: The equipment has started operating steadily, and it is reported that some enterprises in Dongying are about to reduce their production and load, which will support price action. We need to pay attention to the follow-up dynamics.

Cost aspect: Domestic methanol market was fluctuating and consolidating. At the beginning of the week, some traders restocked and production enterprises limited their shipments, driving the rise of the mainland methanol market. However, downstream buyers remained cautious after the rise, and their willingness to purchase was average, which suppressed the market. As a result, the market negotiation atmosphere weakened and prices were running weakly. On March 14th, the spot price of methanol at SunSirs was 2,628.33 RMB/ton, a decrease of 0.03% from the beginning of the week. The demand for liquid chlorine has improved, and Shandong's liquid chlorine first fell and then rose during the week.

Demand side: Downstream was gradually recovering, with more emphasis on maintaining essential procurement. The refrigerant market has started to recover after entering March, and the operating rate of R32 production quota is expected to be 90%. The industry's operating rate is expected to remain at a high level in April. The price of R32 still maintains a stable upward trend, which may drive the upward momentum of dichloromethane.

Market outlook

SunSirs’ analysts believe that the favorable supply side provided supports and the demand recovered slowly, and it is expected that the dichloromethane market will remain stable with a rise in the short term.

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