At the beginning of the week, market news said that due to the shutdown of a company’s equipment for maintenance, the supply in Shandong market became tighter, the inventory was not under pressure, and the company’s quotations were stable. The dichloromethane market rose slightly, but the downstream demand did not improve. In addition, the previous equipment reduction and the company’s increase in load led to a stalemate in supply and demand, and the market rose steadily. According to the monitoring of the commodity market analysis system of Sino-Trade, as of July 7, the average price of dichloromethane bulk water in Shandong was 2,217 yuan/ton, a weekly increase of 5.09% and a year-on-year decrease of 8.77%.
Analysis of influencing factors
Supply side: plant shutdown and load reduction are favorable support
Plant dynamics: The overall operation of the industry has fallen back to about 80%, and the supply is tightening. According to market news, due to a plant failure, the overall low-load operation of Luxi methane chloride is currently supporting the market; Dongying Huatai plant has resumed, Dongyue is 80% operational, and Jiangxi Liwen has 3 plants in operation.
Inventory pressure: At the end of last month, low-priced enterprises had good destocking, and coupled with a decline in supply, the on-site inventory is still acceptable.
Cost side: Methanol and liquid chlorine prices continue to weaken, and dichloromethane cost support is insufficient
Methanol: The mainland is undergoing maintenance, and the number of arrivals at the port has decreased. The demand side port olefins have been reduced. In the traditional off-season, the methanol market has fluctuated downward. As of July 7, the benchmark price of methanol fell by 12.75% during the week.
Liquid chlorine: The supply in Shandong market has increased and the demand is low, and the price of liquid chlorine has fallen widely.
Demand side: Traditional downstream industries are suppressed by seasonal factors, and purchasing intention is weak
Dichloromethane is widely used in refrigerants, pharmaceuticals, coatings, adhesives, electronic cleaning and other fields, and most of them are purchased on dips and just-in-time. Some downstream industries (coatings, adhesives) are affected by high temperatures, rainy seasons and environmental inspections, and the operating rate has declined, and demand is weak.
Refrigerants are still in the peak season of demand, and R32 is basically produced at full capacity, with a large increase in stability. Although the peak season of refrigerants supports some demand, the proportion of self-production is high and under quota restrictions, the increase in external procurement is limited. If terminal consumption does not see significant improvement, weak demand may suppress continued price increases.
Outlook for the future
It is expected that the dichloromethane market will maintain a strong trend in the short term, but the upward space may be restricted by the demand side. It is recommended to pay attention to the dynamics of the plant, inventory changes and follow-up of downstream orders.
Post time: Jul-09-2025