SunSirs: Dimethyl Carbonate Continued to Decline in 2022-Ⅱ

Main influencing factors of dimethyl carbonate trend in 2022

Supply side:

2022 can be said to be the year when the production capacity of dimethyl carbonate broke out. The overall production capacity of domestic dimethyl carbonate is about 1.613 million tons/year, of which the output of dimethyl carbonate was about 1 million tons. Most production enterprises do not have corresponding downstream supporting facilities, and the supply of dimethyl carbonate is mainly for export. Therefore, in 2022, the supply side of dimethyl carbonate was in a state of pressurized shipment.

Demand side:

In 2022, the downstream demand of dimethyl carbonate was weak as a whole. The continuous release of dimethyl carbonate capacity formed a sharp contrast with the downturn of the demand market. Under the constant impact and imbalance between the supply and demand sides, the market price of dimethyl carbonate continued to decline.

Future Market Analysis and 2023 Outlook

The end of 2022 is coming to us quietly. In the fourth quarter, the dimethyl carbonate market continues to have new capacity input, the spot supply on the market is sufficient, and the mentality of the industry is general. However, the Spring Festival in 2023 is getting closer and closer. With the support of macro favorable conditions, domestic logistics has opened up one after another, downstream demand may increase periodically, and in terms of supply, some factories are not willing to continue to give up profits under great cost pressure Therefore, it is expected that in the short term, the domestic market of dimethyl carbonate will be consolidated.

In the long run, after the Spring Festival in 2023, the overall production capacity of domestic dimethyl carbonate will still be sufficient, and the output may also be further improved. Some domestic dimethyl carbonate plants are for their own use, and some are for export. Therefore, under the pressure of supply, the performance of downstream demand will have a more profound impact on the future market of dimethyl carbonate. Let's wait and see whether there will be a new pattern change in the supply and demand of dimethyl carbonate in 2023!

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