SunSirs: Dichloromethane Rose before the Holiday and Fell after the Holiday (September 10-18)

Price trend                               

This week, the dichloromethane market started to rise and then fell. According to the Commodity Market Analysis System of SunSirs, as of September 18th, the average price of bulk dichloromethane in Shandong Province was 2,685 RMB/ton, with a weekly decline of 1.65%.

Analysis review

The raw material cost had limited market support, and this week the focus of methanol had shifted upwards, while the liquid chlorine market had rebounded from a low level; The operating rate of the methane chloride unit had slightly decreased, and the focus of the dichloromethane market hadshifted upward before the holiday. As the holiday approached, the downstream stocking and receiving situation was average, and the shipment volume of enterprises had significantly decreased, leading to a rapid increase in inventory. Returning after the holiday, the overall market demand was mainly following suit, and manufacturers had lowered prices one after another to increase market activity. As of September 18th, the ex factory price of mainstream dichloromethane in Shandong region was around 2,670-2,700 RMB/ton.

Supply side: The operating rate of methane chloride in China was stable with some fluctuations.

In terms of raw materials: Recently, the market for methanol raw materials had fluctuated narrowly. According to the Commodity Market Analysis System of SunSirs, as of September 18th, the spot price of methanol was 2,401.67 RMB/ton, with a shift in focus this week, but a 3.16% decrease from the beginning of the month. The price of liquid chlorine rebounded at a low level, with average shipments from enterprises and a relatively light trading atmosphere in the market.

In terms of demand: Dichloromethane had a wide range of applications and plays an important role in various industries. The popularity of double section replenishment procurement was average, and overall essential procurement was the main focus. An increase of 35,000 tons of R32 domestic production quota was issued for downstream refrigerants, corresponding to a 25% increase in the existing domestic production quota for R32 by 2024. This will alleviate the tight supply situation in the market and support the dichloromethane market.

Market outlook

SunSirs’ analysts believe that the demand for replenishment after the holiday had not yet started, and the short-term price of dichloromethane was consolidating. Before the National Day holiday, the focus of the dichloromethane market may rebound and move upward.

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