August 28 news
According to Spotcom, in the second half of August, the dichloromethane market in China ended the continuous downward trend seen in the first half of the month, showing a volatile trend characterized by an initial bottoming out and rebound, followed by a slight decline after reaching a peak. As of August 28, the mixed price of dichloromethane in bulk in Shandong region was 2,372 CNY/ton, up 21.98% from mid-month. After the price reached a high level, downstream follow-up momentum was insufficient, and most transactions were negotiated on a case-by-case basis.
Analysis of Market Driving Factors
Supporting Factors (Relatively Strong):
Cost support: Geopolitical disruptions in methanol have shifted the focus, and a tightening of liquid chlorine supply has led to a slight increase in prices. This directly raised the production cost of dichloromethane, providing a bottom support for its price.
Supply-side contraction: Some manufacturers in China are conducting plant maintenance or reducing production, and the overall finished product inventory of factories is manageable. Manufacturers have a strong desire to maintain prices, and their reluctance to sell is providing some support to prices.
Suppression factor (relatively weak):
Weak demand: The downstream refrigerant industry (such as R32) has entered the final stage of production, with procurement driven solely by rigid demand and no significant bulk restocking activities. Traditional sectors like pharmaceutical solvents are in the off-season, with insufficient growth in demand. Downstream buyers are increasingly inclined to push for lower prices, thereby capping the upward potential of prices.
Future Market Forecast
In the short term, the dichloromethane market will likely remain in a narrow trading range. If upstream units undergoing maintenance gradually resume production and liquid chlorine supply recovers, cost support will weaken somewhat. Meanwhile, as the peak season for refrigerant industry draws to a close, downstream demand is unlikely to see a significant surge, making it difficult for prices to continue rising sharply. It is expected that the market will mainly focus on digesting previous price increases and maintaining a narrow trading range.
