SunSirs: The Dichloromethane Market Was Weak and Declined in the First Half of May

Price trend

In the first half of May, the market for dichloromethane was weak and declined. According to the Commodity Market Analysis System of SunSirs, as of May 15th, the average price of dichloromethane bulk water in Shandong was 2,412 RMB/ton, a decrease of 4.83% from 2,535 RMB/ton at the beginning of the month, and the highest point in the cycle was 2,625 RMB/ton. The price of raw material methanol decreased, while the cost of dichloromethane slightly decreased; Downstream refrigerant demand was weak, and the support for dichloromethane was weak. At the beginning of the month, due to an unexpected incident at a certain factory, the market slightly increased in the short term. However, the supply of methane chloride remained loose, and the supply and demand side was weak. In the later period, the price of dichloromethane fell again. Overall, the dichloromethane market in the first half of May was volatile and fell.

Analysis review

In the first half of May, there was a slight fluctuation in the operation of methane chloride plants.

In the first half of May, the price of raw material methanol decreased, while the cost of dichloromethane slightly decreased. According to the Commodity Market Analysis System of SunSirs, as of May 15th, the spot price of methanol was 2,325 RMB/ton, a decrease of 4.02% from 2,423 RMB/ton at the beginning of the month.

After entering May, the refrigeration market entered the end of the traditional peak season. Some downstream refrigerant R32 enterprises had shut down for maintenance, with prices temporarily stable, but demand for dichloromethane was weakened. The operating rate of the pharmaceutical intermediate and diluent solvent industries fluctuated slightly, which had rigid support for dichloromethane. However, there was no significant increase in the overall demand for dichloromethane.

Market outlook

According to methane chloride data analysts from SunSirs, as of the 15th, downstream demand for dichloromethane slightly weakened compared to the previous period. In addition, the supply of dichloromethane was loose, and raw material prices were lowered. Affected by the weak fundamentals of the industrial chain, it is expected that the dichloromethane market will consolidate weakly in the short term.

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