SunSirs: Market Supply Was Tight, and Dichloromethane Continued to Rise
August 08 2024 08:58:09 SunSirs (John)
Price trend
Recently (8.1-8.7), the dichloromethane market continued its upward trend in July and continued to rise. According to the Commodity Market Analysis System of SunSirs, as of August 7th, the average price of bulk dichloromethane in Shandong Province was 2,670 RMB/ton, an increase of 2.89% from 2,595 RMB/ton on August 1st. The cost of raw materials had been reduced, and methanol had been sorted and operated at a low level, while liquid chlorine prices had been operated at a low level; The operation of methane chloride units had slightly decreased, downstream demand for procurement had increased, and the inventory of dichloromethane in enterprises had decreased. Due to the impact of low inventory, enterprises had raised the ex factory price of dichloromethane. As of August 7th, the mainstream ex factory price of dichloromethane in Shandong region was around 2,660-2,680 RMB/ton.
Analysis review
Recently (8.1-8.7), the operating rate of methane chloride in China had slightly decreased. The Dongying Huatai plant resumed operation on August 6th, which may increased market supply.
Cost reduction is expected to increase the profit margin of enterprises. Recently, the raw material methanol had been operating at a low to medium level. According to the commodity market analysis system of SunSirs, as of August 7th, the spot price of methanol was 2,475.83 RMB/ton, a decrease of 1.36% from 2,510 RMB/ton on the 1st. The liquid chlorine market was weakening and prices were running at a low level. As of August 7th, the price of liquid chlorine tank trucks in Shandong region was around -400 RMB/ton, which was lower than the -200 RMB/ton at the end of July.
The downstream R32 factory was arranging production according to quota, with normal progress. Downstream demand remained stable, and the tight supply situation continued. Market offers remained strong at high levels.
Market outlook
The methane chloride data analyst from SunSirs believes that although the cost was low, the market supply was tight, and the inventory of enterprises was not high. With the resumption of normal operation of maintenance equipment, it is not conducive to long-term price supported. In the short term, enterprise quotations are firm, and the price center remains stable or upward. In the future, attention should be paid to the supply situation in the field.
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