After the holiday, methylene chloride rose by more than 20%, a new high since 2019!

After May Day, the price of methylene chloride rose rapidly. As of May 19, the average price in Shandong was 4263 CNY/ton, an increase of 20.43% from 3540 CNY/ton on May 6. The current price has hit a new high since 2019.

After the holiday, the overall operating rate of the domestic methane chloride plant is close to 80%, and the supply pressure is not large, which has certain support for methylene chloride. Jinling Dongying plant completed its full-load operation, Dongyue’s methane chloride plant started 50-60%, Jinmao’s methane chloride plant was shutting down, and nearly 90% of the plant was started in Luxi. Jiangsu Liwen and Jiangxi Liwen started at full load. Nearly 70% of Lan Juhua started construction.

On the one hand, domestic manufacturers have low inventories and tight supply, and factories have continued to increase prices. Currently, the quotations of mainstream methylene chloride factories in Shandong are raised by about 570 CNY/ton. On the other hand, downstream films, thinners, foaming agents, etc. still have a certain rigid demand after the festival, which also supports methylene chloride.

Although the price of liquid chlorine is at a low level, the price of methanol is rising, and the cost side is still supported. According to the business agency, as of May 19, the price of methanol was 2680 CNY/ton, an overall increase of 6.06% after the holiday; as of May 19, the mainstream ex-factory price of liquid chlorine for tank trucks in Shandong area reported about 1,200 CNY/ton.

Recently, as the price of raw materials has risen sharply, fear of heights has increased, and stocking has decreased. Dichloromethane prices are expected to remain at a high stalemate in the short term.