SunSirs: Weak Demand, the Chloroform Market Was Significantly Downward

Price trend

This week (11.1-11.13), the market for chloroform fell. According to data from SunSirs, as of November 13th, the price of bulk chloroform in Shandong Province was 2,266 RMB/ton, a decrease of 21.50% from 2,887 RMB/ton at the beginning of the month. The prices of raw materials methanol and liquid chlorine had slightly increased, while the cost of chloroform had slightly increased; However, downstream demand was weak, transactions in the chloroform market were scarce, enterprises had accumulated a small inventory, and factory prices had gradually decreased.

Analysis review

Recently (11.1-11.13), the operating rate of methane chloride in China had remained around 61%. In the later stage, a plant in Shandong Province planed to restart with feedstock.

Recently (11.1-11.13), the raw material methanol had slightly increased, the price of liquid chlorine had significantly increased, and the cost support for chloroform had strengthened. According to the Commodity Market Analysis System of SunSirs, as of November 13th, the spot price of methanol was 2,465 RMB/ton, an increase of 1.65% from the 2,425 RMB/ton at the beginning of the month. As of November 13th, the acceptance price of liquid chlorine in Shandong region had been sorted out around 600 RMB/ton.

In the off-season, the terminal only needs a small amount of support for refrigerants. As of November 13, the market for refrigerant R22 was declining, and the operating low point fluctuated narrowly, leading to a significant weakening of demand support for chloroform. In 2023, the total production quota of R22 was reduced by 19% to 181,800 tons, and overall support for chloroform demand will weaken in the medium to long term.

Market outlook

According to methane chloride data analysts from SunSirs, on the one hand, weak demand has a significant impact on chloroform, and on the other hand, there is slight cost support in the short term. It is expected that the market for chloroform will mainly consolidate in a narrow range in the later stage.

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