Market Overview:

In 2026, the domestic dichloromethane market ended its weak trend. Driven by strong cost support and reduced supply, prices rebounded from their lows, showing a trend of regional fluctuations and upward movement.

Entering the first week of February, the upward trend continued. According to the commodity price analysis system of SunSirs, as of February 6th, the average price of bulk dichloromethane in Shandong province was 1,860 RMB/ton, a 2.34% increase compared to the beginning of the month and a 9.57% increase compared to the beginning of the year.

Key drivers of price increases:

1. Strong cost support: High liquid chlorine prices were leading to production losses.

After a slight dip at the beginning of February, the liquid chlorine market rebounded to its January high. As of February 6, the ex-factory price for tank trucks remained at 300-450 RMB/ton. Methanol prices experienced a slight decline; on February 6th, SunSirs' benchmark price for methanol was 2,200 RMB/ton, a decrease of 2.87% compared to the beginning of the month. This slightly eased cost pressure, but did not change the overall loss situation. Due to cost pressures, companies had a very strong desire to raise prices.

2. Supply reduction: Lowering production rates at manufacturing facilities alleviated oversupply pressure.

To cope with losses, some production facilities in Shandong province voluntarily reduced their operating rates. In early February, these facilities continued to operate at reduced capacity, with some orders being fulfilled and shipped, limiting the availability of spot goods. Low inventory levels and reduced supply flexibility eased pressure on the supply side, providing room for price increases.

3. Demand side: Pre-holiday stocking up by those with immediate needs provided basic support.

As the Spring Festival approaching, downstream industries were conducting their usual pre-holiday stockpiling, creating a rigid demand. However, the driving force behind demand growth remained limited, and overall downstream purchasing was primarily driven by essential needs, without significant speculative buying. Therefore, the demand side provided support rather than strong impetus.

Market Outlook: Short-term outlook is bullish, but long-term pressure remains

Overall, the market is expected to maintain a relatively strong and consolidating trend before the Spring Festival. The support from high costs and supply contraction remains, and manufacturers have a clear intention to maintain high prices, making price increases more likely than decreases. However, the extent of demand will be the key factor determining the upward potential. Close attention should be paid to the price trend of liquid chlorine and the operating status of major production facilities.

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