SunSirs: In Late September, the Dichloromethane Market Remained Stable with a Rising Trend
September 30 2024 15:00:12 SunSirs (John)
Price trend
This week (9.19-9.29), the dichloromethane market showed a stable and upward trend. According to the Commodity Market Analysis System of SunSirs, as of September 29th, the average price of bulk dichloromethane in Shandong Province was 2,695 RMB/ton, with a weekly increase of 2.1%.
Analysis review
The dichloromethane market experienced a stable and slight upward trend, with a relatively optimistic trading atmosphere. The delivery process of enterprises in Shandong region was smooth, and the market performance was particularly impressive; Enterprises in the southern region, on the other hand, maintained a relatively stable but slightly calm state. As the holiday approached, the inventory pressure of enterprises was relatively low. The market generally believes that the possibility of a significant adjustment in the price of dichloromethane before the holiday season is small, and buyers' enthusiasm for continuing to stock up before the holiday was not high. As of September 29th, the ex factory price of mainstream dichloromethane in Shandong region was around 2,670-2,720 RMB/ton.
On the supply side, the load of the equipment had been reduced, and the production of methane chloride had slightly decreased.
In terms of raw materials: Recently, the upward movement of raw material prices had strongly supported the upward trend of dichloromethane market. The market for raw material methanol stopped falling. According to the Commodity Market Analysis System of SunSirs, as of September 28th, the spot price of methanol was 2,428.25 RMB/ton, an increase of 1.57% compared to September 19th. The overall supply of goods was abundant, but the growth rate on the demand side was relatively limited. The center of the liquid chlorine market had shifted upward, and the trading atmosphere in the market was still acceptable.
In terms of demand: Dichloromethane had a wide range of applications, and downstream refrigerant R32 was overused by air conditioning companies in the first half of the year, resulting in a continuous increase in demand. The quota policy had a significant impact on R32, with a market price of around 38,000 RMB/ton. Procurement channels had not fallen back, and the market remained strong, which provided positive support for dichloromethane market.
Market outlook
SunSirs’ analysts believe that as the holiday approaching, the short-term price of dichloromethane will consolidate, supported by rising raw material prices. After the holiday, major factories will shut down for maintenance, and it is expected that the focus of the dichloromethane market will shift upward.
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