In the second half of July, the industrial-grade dimethyl carbonate market initially traded sideways before experiencing a sustained, one-sided upward trend, with prices steadily rising. Towards the end of the month, as prices reached a relatively high level, downstream acceptance of higher prices decreased, market sentiment became more cautious, and the pace of actual orders slowed. As of July 28, the average price of domestic industrial-grade dimethyl carbonate had increased by 9.91% compared to mid-month.
fundamental analysis
Cost side:
The prices of methanol and propylene oxide, raw materials for co-production routes, continued to strengthen in the first half of July, increasing production costs and reducing manufacturers’ willingness to sell at low prices, thus creating a rigid floor. Towards the end of the month, methanol prices eased from their high levels, and the rise in propylene oxide prices stalled, eliminating further upward pressure on costs; with corporate profits recovering, the momentum to maintain prices is expected to decline marginally in the short term.
Supply side:
Many domestic dimethyl carbonate (DMC) plants are currently shut down or undergoing maintenance. Some previously shut-down plants are gradually restarting, and the overall industry operating rate has recovered to around 61%. Most factories are still primarily focused on fulfilling previous orders, resulting in relatively limited available spot resources, which provides some support for prices.
Demand Side:
Traditional downstream industries such as polycarbonate (PC), coatings, and adhesives are still in their seasonal off-season, with limited increases in end-user operating rates and low purchasing enthusiasm, mainly relying on just-in-time purchases and small-order restocking. Demand in the lithium battery electrolyte sector is relatively stable, maintaining normalized, essential purchasing, providing basic support to the market. The severely insufficient increase in domestic demand is the core factor restricting a significant price surge.
Market Outlook:
In the short term, dimethyl carbonate (DMC) prices are likely to see a slight easing, fluctuating within a range. If supply increases significantly and downstream buyers remain cautious, there is a risk of a market correction; however, considering the current low inventory pressure and the support from essential electrolyte demand, the downside potential is limited. Key areas to monitor include: plant restart progress, methanol and propylene oxide price fluctuations, the recovery of traditional downstream operations, and changes in electrolyte company procurement patterns.
Post time: Jul-29-2026