SunSirs: Supply and Demand Gamed, and Dichloromethane Market Was downward
December 13 2024 15:55:06 SunSirs (John)
Price trend
This week (12.6-12.12), the supply and demand of dichloromethane were deadlocked, and prices were lowered. According to the Commodity Market Analysis System of SunSirs, as of December 12th, the average price of bulk dichloromethane in Shandong Province was 2,910 RMB/ton, with a weekly decline of 5.98%.
Analysis review
The industry's operating load during the week remained basically the same as last week, and the demand side maintained rigid procurement. The supply-demand game weakened the market trading atmosphere, and the inventory of enterprises increased. As the end of the year approached, the prices of manufacturers slightly decreased, which aroused market sentiment. As of December 12th, there was no significant year-end stocking situation, and the outlook was strong. As of December 12th, the ex factory price of mainstream dichloromethane in Shandong region was around 2,880-2,920 RMB/ton.
On the supply side: During the week, some companies' factory production capacity slightly recovered, while others reduced their equipment load. Overall, it remained stable compared to the previous week.
In terms of raw materials, the methyl alcohol market was on the rise, with steady increases in production and operating rates, and overall shipments were smooth. As of December 12th, the spot price of methyl alcohol in SunSirs was 2595.83 RMB/ton, an increase of 2.03% from the beginning of the month. The market situation of liquid chlorine in Shandong was stable, with a relatively flat trading atmosphere and average shipments.
In terms of demand, the refrigerant market entered the end of annual production, and due to the quota system, enterprise inventory was significantly insufficient. R32 products are mainly sold to air conditioning enterprises, with prices gradually rising to 42000 RMB/ton. The national subsidy policy was significant, and the demand for household appliances was performing well, making the market easy to rise but difficult to fall. Other applications should maintain a strong demand for purchasing and restock at low prices.
Market outlook
SunSirs’ analysts believe that the raw material support was stable, while the supply side inventory was increasing. As the end of the year approached, the demand side expects low-priced stockding, and it is expected that the dichloromethane market will operate weakly and steadily in the short term.
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