The Chinese Dichloromethane Market Jumped This Week (Sept 1-7, 2017)

he Chinese dichloromathane market jumped this week. As the sales in last week was active, the the high inventories decreased greatly. The supply was extremely tight and some producers stopped offering. Moreover, some units were expected to undergo maintenance later. Hence, the dichloromethane market jumped. After the great increases, the demand slid.

According to ECHEMI, the inventories were transferring from producers to traders. The overall consumption for dichloromethane was weak. At the end of this week, around 3,000-4,000mt goods produced by Shandong will arrive in South China. Some players showed a wait-and-see position.

Up to September 7, 2017, the average ex-works price in Shandong was RMB 2,277/mt, which was up 10.94% from last week. The average ex-works price in Jiangsu and Zhejiang was RMB 2,640/mt, up 6.67% from last week. The average price in South China was RMB 3,170/mt, which was up 6.73% from last week.

Forecast: Given the tight supply, the Chinese dichloromethane market may increase further. However, as the downstream demand is soft, the overall dichloromethane market will be largely stable next week.