Dichloromethane market rises

Price trend (7.1-7.7)

Sodium Molybdate

At the beginning of the week, market news showed that due to equipment failures and maintenance by some companies, the supply in the Shandong market was tight, inventory was not under pressure, and enterprise offers were stable. The dichloromethane market slightly increased, but downstream demand did not improve. Coupled with the previous equipment load reduction and enterprise load increase, supply and demand were deadlocked, and the market remained stable with an upward trend. According to the monitoring of the commodity market analysis system of Shengyi Society, as of July 7th, the average price of dichloromethane dispersed water in Shandong Province was 2217 yuan/ton, with a weekly increase of 5.09% and a year-on-year decrease of 8.77%.
analysis of influencing factors
Supply side: favorable support for device shutdown and load reduction
Device dynamics: The overall industry production has fallen to around 80%, and supply is becoming tight. According to market news, the overall low load operation is currently providing support for the market
Inventory pressure: low-priced enterprises had better destocking at the end of last month, coupled with a decrease in supply, the on-site inventory is still acceptable.
Cost side: The prices of methanol and liquid chlorine continue to weaken, and the cost support for dichloromethane is insufficient
Methanol: Due to maintenance in mainland China and a decrease in arrivals at ports, the demand for olefins at ports has decreased. The traditional off-season demand has led to a fluctuating downward trend in the methanol market. As of July 7th, the benchmark price of methanol in Shengyi Society was 2447.50 yuan/ton, a decrease of 12.75% during the week.
Liquid chlorine: Due to low supply and demand in the Shandong market, the price of liquid chlorine has fallen sharply.
Demand side: Traditional downstream industries are suppressed by seasonal factors, resulting in weak purchasing intentions
Dichloromethane is widely used in the fields of refrigerants, pharmaceuticals, coatings, adhesives, electronic cleaning, etc., and is often purchased at low prices and in high demand. Part of the downstream (coatings, adhesives) are affected by high temperatures, rainy seasons, and environmental inspections, resulting in a decrease in operating rates and weak demand.
The refrigerant is still in the peak demand season, and R32 is basically producing at full capacity, with a significant increase in stability. Although the peak season for refrigerants supports some demand, the increase in external procurement is limited due to the high proportion of self-produced refrigerants and quota restrictions. If there is no significant improvement in terminal consumption, weak demand or sustained price increases are suppressed.
Future prospects
It is expected that the dichloromethane market will maintain a strong and volatile trend in the short term, but the upward space may be constrained by demand. Suggest paying attention to device dynamics, inventory changes, and downstream order follow-up.

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