Market Overview

At the beginning of last week, the dichloromethane market in Shandong continued to decline, the market was sluggish, manufacturers made concessions to ship, and dichloromethane fell to a five-year low. On May 13, the average price of dichloromethane bulk water in Shandong was 2,035 RMB/ton. Subsequently, the Sino-US tariff policy and domestic financial policy stimulated market vitality, increased confidence in the market recovery, and the upward trend of raw material methanol supported the rebound of dichloromethane.

According to the monitoring of the commodity market analysis system of SunSirs, as of May 15, the average price of dichloromethane bulk water in Shandong was 2,120 RMB/ton, up 2.66% during the week.

Analysis of influencing factors

Supply side: local reduction in load and stable price, overall still loose

Device dynamics: Shandong Jinling Chemical is operating at a reduced load, the overall industry operating rate remains at around 75%, and the supply is relatively stable.

Enterprise inventory: As market sentiment warms up, downstream buying sentiment has increased, and enterprise inventory pressure has eased.

Cost side: Methanol is strong, liquid chlorine is weak

Methanol: The market has risen sharply, spot prices have followed suit, and shipments have been good. The price of methanol has rebounded by 4.94% during the week, and the cost support for dichloromethane has been strengthened. It has fallen back today. As of May 15, the spot price of methanol in Shandong was 2426.25 RMB/ton, with a weekly increase of 0.99%.

Liquid chlorine: The price of liquid chlorine in Shandong has fallen slightly, weakening the cost support for dichloromethane.

Demand side:

The downstream market of refrigerants is in the traditional peak season, R32 is consolidating at a high level, and dichloromethane is purchased on demand due to quota restrictions. No significant improvement has been seen in other areas.

Outlook for the future

The policy benefits continue to ferment: The adjustment of Sino-US tariffs and the domestic stable growth policy may continue to boost market sentiment.

Cost support is strengthened: If the price of methanol remains high, the profit margin of dichloromethane will be compressed, and manufacturers will be more willing to support prices.

Seasonal demand support: The refrigerant industry is still in the peak season. If the price of R32 remains strong, it may drive the demand for dichloromethane to replenish inventory.

It is expected that the dichloromethane market will fluctuate and run stronger in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.