SunSirs: The Upward Trend Did Not Continue, but Dichloromethane Declined (August 14-21)
August 22 2024 09:15:05 SunSirs (John)
Price trend
Recently (8.14-8.21), the dichloromethane market did not continue its upward trend but instead declined. According to the Commodity Market Analysis System of SunSirs, as of August 21, the average price of bulk dichloromethane in Shandong Province was 2,660 RMB/ton, a weekly decrease of 5%.
Analysis review
The cost of raw materials had slightly increased, with methanol slightly weakening and liquid chlorine prices recovering this week; The operating rate of methane chloride plants had slightly decreased, and the price of dichloromethane rose to a high level last week. The demand side had a strong wait-and-see attitude, and the market transaction atmosphere was weak. The extent of enterprise inventory reduction was not significant, and factory quotations had slightly declined. As of August 21st, the ex factory price of mainstream dichloromethane in Shandong region was around 2,620-2,700 RMB/ton.
Supply side: The operating rate of methane chloride in China had slightly decreased, and some units were operating at low loads and undergoing maintenance.
In terms of raw materials: Recently, the raw material methanol continued to fluctuate weakly. According to the Commodity Market Analysis System of SunSirs, as of August 21, the spot price of methanol was 2,430 RMB/ton, a decrease of 3.19% from the beginning of the month. The demand for liquid chlorine in the market had increased, and prices had recently been raised.
In terms of demand, solvents were the main use of dichloromethane. As of August 21st, there was a strong wait-and-see sentiment in the market, and the market transaction atmosphere was weak. Downstream refrigerants were produced according to quotas and were purchased on demand. In July, China's dichloromethane export volume was 6,145.31 tons, a decrease of 51.8% compared to June. Foreign trade demand weakened and domestic inventory accumulated.
Market outlook
SunSirs’ analysts believe that weak demand and high inventory levels in enterprises will lead to a slight decline in prices in the short term.
If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.
