Market Overview: Prices continued to decline (December 10-24)
According to the commodity price analysis system of SunSirs, as of December 24th, the average price of industrial-grade dimethyl carbonate in China was 4,166 RMB/ton, a decrease of 5.3% compared to mid-December. The market continued its downward trend since December due to the combined effects of increasing supply pressure, weakening cost support, and sluggish demand.
Supply side: Plant restarts are creating supply pressure, which is the main negative factor
The significant increase in supply is the fundamental reason for the shift in this market trend. Since December, facilities that are previously shut down or undergoing maintenance have restarted and are operating at full capacity. Faced with increased supply, some manufacturers have accumulated inventory. To boost sales and reduce inventory pressure, they have adopted price reduction strategies, further exacerbating bearish market sentiment and downward price momentum.
Demand side: Primarily driven by essential needs, buying interest remains weak
Downstream demand failed to provide effective support to the market. Major downstream industries such as polycarbonate and pharmaceutical photopolymer industries mainly maintained production through essential purchases, and generally adopted a wait-and-see attitude towards the future market, being cautious in their purchasing. With prices on a downward trend, downstream buyers exhibited a clear "buy on the rise, not on the fall" mentality, only making small orders and replenishing stocks as needed. This inability to absorb the rapidly increasing supply led to a lack of significant market transactions.
Cost side: Raw material prices are falling, and the support level is shifting downwards
Downstream demand failed to provide effective support to the market. Major downstream industries such as polycarbonate and pharmaceutical photopolymer industries mainly maintained production through essential purchases, and generally adopted a wait-and-see attitude towards the future market, being cautious in their purchasing. With prices on a downward trend, downstream buyers exhibited a clear "buy on the rise, not on the fall" mentality, only making small orders and replenishing stocks as needed. This inability to absorb the rapidly increasing supply led to a lack of significant market transactions.
Market Outlook: Supply and demand dynamics continue to be in play, and the market is likely to fluctuate and tend to be weaker
In mid-December, the dimethyl carbonate market continued its clear downward trend under the triple pressure of recovering supply, weak demand, and collapsing costs. The rapid recovery of supply was the core factor driving the market turnaround and sustained decline. Looking ahead, whether the market can stabilize and stop falling depends on whether the oversupply situation can be alleviated through proactive production cuts by companies. Until clear signals of supply contraction emerge, the market is expected to maintain a weak and volatile pattern.
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