SunSirs: The Market Situation of Chloroform Significantly Declined in April

Price trend

The market for chloroform significantly declined in April. According to data from SunSirs, as of April 27th, the price of bulk chloroform in Shandong Province was 2,362 RMB/ton, a slight decrease of 11.68% from the price of 2,675 RMB/ton at the beginning of the month.

The price of raw material methanol fluctuated to be weaker, and the cost support for chloroform was weak; The price of downstream refrigerant R22 slightly decreased at the end of the month, and there was a strong demand support for chloroform but no new support; Methane chloride production fluctuated slightly, while the supply of chloroform was generally loose. At the beginning of the month, the market for chloroform declined due to the decrease in methanol prices and the restart of the Meilan plant; Afterwards, the supply and demand of chloroform remained stagnant until the end of the month, and the factory prices of enterprises were significantly reduced. The market situation for ammonium chloride decreased significantly at the end of the month.

Analysis review

The operating rate of chloroform fluctuated slightly in April, and the pressure on supply was significant overall.

In April, the price of raw material methanol narrowly consolidated, and the cost support for chloroform was weaker. According to the Commodity Market Analysis System of SunSirs, as of April 27th, the spot price of methanol was 2,488 RMB/ton, a decrease of 2.86% from 2,561 RMB/ton at the beginning of the month. The high point during the cycle was 2,571 RMB/ton, and the low point was 2,401 RMB/ton.

In April, the price of R22 remained strong in the early stage and slightly declined in the later stage. At the beginning of the month, support for chloroform was strong and weak in the later stage. But as the peak season passes, support for chloroform may weaken again in the later stages. Overall, the total production quota for R22 in 2023 will be reduced by 19% to 181,800 tons.

Market outlook

According to methane chloride data analysts from SunSirs, although there is support for the demand side of chloroform as of the 28th, with the end of the later peak season and pressure on the supply side, it is expected that the chloroform market will be weakly consolidate in the short term.

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