SunSirs: Inventory Was under Pressure, and Dichloromethane Prices Continued to Decline

Price trend

This week (2.15-2.21), the dichloromethane market in Shandong continued to lower prices and offer discounts for sales. According to the Commodity Market Analysis System of SunSirs, the average price of dichloromethane in Shandong Province on February 21 was 2,410 RMB/ton, with a weekly decline of 6.32%.

Analysis review

The supply of dichloromethane in the Shandong market was stable, downstream demand was slowly recovering, and there was a lack of support for essential purchases. The pressure on enterprises to ship has increased, and inventory was high. Enterprises continued to lower prices and offer discounts for shipments. As of February 21st, the market was in a supply-demand game, with downstream demand supporting it, and there was still a bearish sentiment. On February 21st, the mainstream ex factory price of dichloromethane in Shandong region was around 2,350-2,400 RMB/ton.

Supply side: The starting load this week was running steadily.

Cost side: The methanol market atmosphere has eased, supply was tight, and the market has fluctuated slightly upwards. On February 20th, the spot price of methanol in SunSirs was 2,595 RMB/ton, an increase of 0.65% from the beginning of the week. The liquid chlorine market was experiencing a weak downward trend, with stable supply and reduced demand. In order to promote shipments, companies have slightly lowered the price of liquid chlorine.

Demand side: Dichloromethane was widely used, downstream production was gradually recovering, and procurement enthusiasm was not high. The operating rate of the refrigerant R32 industry is relatively low, and the overall supply was tight. In the long run, there is an expected increase in demand, and it is expected that the market will maintain a stable and upward trend in the future.

Market outlook

SunSirs’ analysts believe that in the short term, enterprises will mainly consume inventory, and it is expected that dichloromethane will operate steadily and to be weaker.

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