SunSirs: Chloroform Market in Shandong Continued to Rise Due to Spot Tightening

Price trend

According to the data monitoring of SunSirs, after May Day, the price of chloroform in Shandong continued to rise. As of May 18, the average price of chloroform in Shandong was about 2,100 RMB/ton, a significant increase of 50% from 1,400 RMB/ton in early May.

Analysis review   

Product: At present, the chloroform market in Shandong continues to rise, and the overall operating rate of enterprises has dropped to below 50%, of which Shandong Jinling 440,000 tons/year plant started 50%, Luxi Chemicals 400,000 tons/year plant started 40%, Shandong Dongyue's 280,000 tons/year plant started 40%, and Dongying Jinmao's 80,000 tons/year plant has been shut down. The overall inventory of the industry is low, the spot supply in the market is tight, and the purchase and stock up in the downstream is acceptable, with rigid demand as the main factor. At present, the quotation in Shandong is about 2,100-2,200 RMB/ton, the price in Jiangxi Liwen is about 2,200 RMB/ton, and the price in Jiangsu is about 2,850 RMB/ton.

Industry chain: On the upstream side, due to the slowdown in downstream demand and rising port inventories, the domestic methanol market price fluctuated downward, and the market started relatively stable, currently about 1,692 RMB/ton; The liquid chlorine market was firm and high, large factories in Shandong have lowered their burden, the market supply was tight, and the downstream market was mainly in need. The current market price is 500-800 RMB/ton. On the downstream side, the domestic refrigerant market began to stabilize after a sharp decline, the company's intention to increase prices was strong, and the market supply declined. The current price is hovering around 15,000 RMB/ton; the solvent and pharmaceutical pesticide industries just need to purchase lightly, which is insufficient to support the price of chloroform.

Market outlook

Analysts of SunSirs believe that the current operating rate of the chloroform market is relatively low, the inventory pressure is not large, and the companies have strong intentions to set prices. The downstream market just needs to buy, and traders' inquiries have increased recently. It is expected that the high level will be firm in a short time.

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