SunSirs: The Market Price of Chloroform Had Dropped Sharply (March 20-27)

Price trend

This week (3.20~3.27), the market for chloroform fell sharply. According to data from SunSirs, as of March 27, the price of bulk chloroform in Shandong was 3,000 RMB/ton, a slight decrease of 8.40% compared to the price of 3,275 RMB/ton last Monday.

Analysis review

The price of raw materials decreased slightly, and the cost support for chloroform was weak; The downstream refrigerant R22 had rigid support for the procurement of chloroform in the peak season, but the industry's operating rate was high, and the pressure on the supply side of chloroform was high. The factory price of chloroform in enterprises had been adjusted downward, and the price of chloroform had significantly decreased. As of March 27, the factory price of chloroform of Jinling Chemical was 2,900 RMB/ton, a decrease of 200 RMB/ton compared to the previous period.

This week (3.20~3.27), the methane chloride unit continued to operate at a high level, and the supply of chloroform was loose. This week (3.20~3.27), the price of raw material methanol decreased slightly, and the cost support for chloroform was weak. According to SunSirs, as of March 27, the spot price of methanol was 2,593 RMB/ton, down 0.95% from the price of 2,618 RMB/ton on last Monday. The international crude oil price was consolidating at a low level, coupled with the domestic raw material coal fluctuated in a range, and the methanol price will not rise significantly in the near future. The cost of chloroform is expected to be stable and weaker.

On the one hand, the total production quota for R22 was reduced by 19% to 181,800 tons in 2023. On the other hand, since the arrival of the traditional peak season in March, the price of R22 was strong, and there was a replenishment demand for chloroform. However, due to the impact of quota reduction, the overall demand continued to decrease compared to previous years.

Market outlook

According to methane chloride data analysts from SunSirs, although there is currently demand side support for chloroform, the supply side pressure is high, coupled with cost side support is weak. It is expected that the market for chloroform will consolidate in a weak manner in the short term.

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