SunSirs: Recent Market Analysis of Dichloroethane in Major Regions

Since March, the U.S. dichloroethane export market has continued its previous upward trend. Analysis shows that on the cost side, due to current shipping disruptions in the Strait of Hormuz, the global supply gap for crude oil and ethylene has widened, and rising raw material prices have provided firm support for local dichloroethane export quotes. On the supply side, global dichloroethane supplies are tight, and the U.S. has become a key alternative source. In terms of geopolitics and logistics, shipping risk premiums have risen, and trade flows have been restructured. Disruptions to shipping in the Red Sea and the Strait of Hormuz have led to a significant increase in global container freight rates and crude oil transportation costs. Higher ocean freight rates from the U.S. to Asia and Europe have pushed up export prices.

Driven by a combination of factors—including rising energy costs, regional supply contraction, global supply shortages, and geopolitical and logistical disruptions—dichlorethane export quotes in Northwest Europe have been raised once again.

The dichlorethane market in Asia is trending upward. On the supply side, the conflict in the Middle East has disrupted ethylene feedstock supplies to South Korea and led to reduced operating rates and suspended exports of dichlorethane. Meanwhile, China is exporting only limited volumes, and European supplies cannot quickly fill the gap due to freight rate and shipping schedule issues, leaving the Asian market with no alternative sources. On the cost side, as local ethylene prices have risen, the production cost line for dichloroethane has shifted upward, leaving producers with no room to lower prices; regarding logistics, the escalation of conflict in the Middle East has driven up freight rates for both intra-Asian and cross-regional shipments; in terms of market sentiment, amid supply shortages and expectations of rising costs, local producers have suspended dichloroethane quotations and withdrawn offers from the market, further driving up spot prices.

As an integrated internet platform providing benchmark prices, on March 16, the benchmark price for dichloromethane reported by SunSirs stood at 3,265.00 RMB/ton, representing an increase of 86.04% compared to the beginning of the month (1,755.00 RMB/ton).

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