SunSirs: The Dichloromethane Market in October Reached a High For the Year

https://www.chemnet.com   Nov 01,2024 SunSirs

Price trend

In October, the dichloromethane market surged to a high point of the year and then fluctuated and fell back. On October 10th, the average price of dichloromethane in Shandong reached a high point of 2880 RMB/ton, an increase of 5.88%. It fluctuated and fell back in late October. According to the Commodity Market Analysis System of SunSirs, as of October 31st, the average price of bulk dichloromethane in Shandong Province was 2,650 RMB/ton, a monthly decrease of 2.57%, and operated at a mid to high level this year.

Analysis review

The traditional peak season of Golden September and Silver October, coupled with the launch of a package of incremental economic policies by the government to boost market confidence, has led to a significant increase in the enthusiasm of large companies and enterprises for price increases. After the holiday, the market for dichloromethane has risen all the way to a high for the year. The parking and maintenance of large factories continued to be favorable, and the high market price continued until mid month. However, market demand was limited, and the trading atmosphere was light. Terminals were buying goods according to demand, and many were holding a wait-and-see and bearish attitude. Shandong large factories had significantly lowered their quotations, causing the market to fluctuate and fall. As of October 31st, the market atmosphere had improved, and enterprises were actively selling goods. The trading situation was smoother than before, and the market was temporarily stable. As of October 31st, the ex factory price of mainstream dichloromethane in Shandong region was around 2,620-2,680 RMB/ton.

In terms of supply, multiple large factories stopped for maintenance and reduced operating loads within the month, resulting in a significant decrease in the domestic methane chloride production rate.

In terms of raw materials, the methanol market fluctuated and declined in October, and the supply-demand imbalance in the market still existed. According to the Commodity Market Analysis System of SunSirs, as of October 31st, the spot price of methanol was 2,440 RMB/ton, a decrease of 5.33% from the beginning of the month. The liquid chlorine market first rose and then fell, with an overall upward trend compared to the beginning of the month and a weaket trend.

On the demand side: The demand side was entering the off-season and entering the fourth quarter, downstream refrigerant R32 will be purchased on demand according to the remaining quota within the year. The refrigerant quota plan for 2025 has been issued, and the implementation of second-generation refrigerants was accelerated. The third-generation refrigerant R32 increased by 45,000 tons year-on-year. Coupled with the implementation of the national policy of promoting the economy through trade in, the production and scheduling of air conditioners will be significantly increased, which will be favorable for the demand for dichloromethane in 2025.

Market outlook

SunSirs’ analysts believe that the raw material side is operating to be weaker, and the load of large factories' maintenance equipment will be gradually recovering. Supply is increasing, and demand is limited in the short term and downstream will purchase at low prices on demand. Therefore, it is expected that the dichloromethane market will operate weakly.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.

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