Price trend

Rising before falling: The initial surge at the beginning of the week continued the brief surge seen at the end of July, but downstream acceptance was low. Subsequently, supply pressure intensified, prompting companies to cut prices to boost sales.

Significant decline: According to the SunSirs’ Commodity Market Analysis System, as of August 7, the average price of bulk dichloromethane in Shandong Province was 2,075 RMB/ton, a weekly decrease of 5.36% and a year-on-year decrease of 22.28%.

Analysis of Influencing Factors

Supply Side: Operating Rates Recovered, Inventory Pressure Emerged

Plant Dynamics: Production at Dongying Huatai Chemical and Jinling Chemical has rebounded, bringing overall industry utilization to around 80%, easing supply.

Inventory Pressure: Downstream procurement was weak, leading companies to reduce prices and reduce inventory, easing inventory pressure at some manufacturers.

Short-Term Variables: It is reported that Huatai's temporary plant shutdown on August 7th, may provide support for local prices.

Cost side: Methanol prices fell, liquid chlorine prices rose, and cost support was insufficient

Methanol: Port inventories were high, and the market fluctuated and was weak this week. As of August 7, the benchmark price of methanol on SunSirs was 2,383.33 RMB/ton, down 0.42% last week.

Liquid chlorine: Tightening supply in Shandong and increased downstream shipments led to a slight price increase, but the impact on dichloromethane was limited.

Demand: Seasonal pressure, purchased primarily as essential needs

Downstream industries like refrigerants and pharmaceuticals showed limited purchasing activity, primarily replenishing inventory on demand, with no significant increase in volume. High temperatures and power restrictions in some regions led to a slight decline in operating rates, suppressing demand.

Market outlook

Supply remains relatively loose, but Huatai's shutdown may slow the decline, and prices are expected to fluctuate at a low level. If downstream demand recovers or exports increase, the market may rebound slightly. It's important to pay attention to plant dynamics, inventory changes, and export orders.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.