Methylene Chloride Market Continued Booming This Week (Oct 13-19,2017)

The Chinese methylene chloride market continued jumping this week.

As the inventory hit a low level, downstream users’ buying interest was high influenced by the “buy-high” mentality. Some producers in Shandong, Jiangsu and Zhejiang had stopped receiving new orders. Some traders in Guangdong were unwilling to sell goods. The sales prices were higher. However, the operating rate in the methylene chloride industry was low. Some units will undergo maintenance in November, players are bullish about the market. Up to October 19, the average ex-works price in Shandong was RMB 2,741/mt, up 7.03% from last week. The average price in Jiangsu and Zhejiang was RMB 3,165/mt, up 5.40% from last week. The average market price in South China (goods from Jinling in barrel) was RMB 4,008/mt, up 9.00% from last week.   

Forecast: Given the tight supply, the Methylene Chloride market will continue to increase. But, downstream demand may remain stable and modest as the production cost has increased greatly. It is predicted that the Chinese methylene chloride market will be stable next week.