Market Overview (November 1-7)
As of November 7th, the average bulk price of dichloromethane in Shandong was 1910 yuan/ton, a 6.26% increase from the beginning of the month, successfully halting its decline and rebounding. However, compared to the same period last year, the price is still down significantly by 33.8%, reflecting that although the market has seen short-term positive developments, the overall weak trend has not fundamentally reversed. In early November, the dichloromethane market attempted to emerge from its weakness driven by supply contraction, but weak demand limited the potential for price increases.
Supply side: Supply contraction is the main driver of rising prices.
The operating rate of the domestic methane chloride industry has declined significantly, with many major companies frequently shutting down or reducing their operating rates. The overall industry operating rate has dropped to around 65%, and company inventories have consequently fallen to low levels. This relaxed operating environment has provided a solid foundation for supporting prices in the market.
Demand side: Insufficient demand limits market upside potential.
In stark contrast to the booming supply side, demand remains sluggish. Overall demand is weak, with downstream industries generally holding high levels of inventory, limiting their ability and willingness to purchase. Market transactions are primarily driven by rigid demand, with traders and downstream factories showing little interest in pursuing higher prices. Therefore, although reduced supply has pushed up prices, the lack of substantial increase in actual demand means the foundation for price increases is not solid.
On the cost side: Raw material prices are diverging, with limited overall support.
Methanol: As a primary raw material, the methanol market faces continued pressure from high port inventories, high supply, and weak demand, leading to a downward trend in prices. As of November 7th, the benchmark price for methanol on the business society platform was 2155 yuan/ton, a decrease of 2.78% during the period. Although recent expectations of reduced supply have prompted a slight price rebound, the wide-range fluctuations at low levels have weakened the key cost support for dichloromethane.
Liquid Chlorine: Liquid chlorine prices in Shandong province initially fell before rising, with overall sales remaining acceptable, providing moderate bottom support for dichloromethane.
Market Outlook:
The dichloromethane market rebounded in early November driven by proactive production cuts. In the short term, the tight supply situation is expected to continue, providing support for prices, and the market may maintain a slightly bullish and volatile trend. However, further price increases require support from the demand side. If downstream inventories are not effectively digested, the sustainability of the current price increase will be challenged.
Post time: Nov-10-2025