Lead: Recently, the domestic dichloromethane market has maintained an overall weak and volatile trend, with limited substantial positive drivers for prices. Given the lackluster demand performance, the upward momentum remains insufficient. During the period, the frequency of price fluctuations increased, with a range-bound pattern dominating. As of now, the price of dichloromethane in the Shandong region stands at 2050 yuan/ton (range: 2020-2080 yuan/ton), up 0.99% week-on-week.
The supply side remains loose. During this period, chloromethanes production reached 70,600 tons, up 6.81% from the previous week; capacity utilization was 78.88%, up 3.31 percentage points from the prior period. During the cycle, some previously shutdown or reduced-load units resumed or increased operations, with total restorations exceeding losses. As a result, both weekly production and capacity utilization rose compared to the previous cycle, pushing the overall industry operating rate to around 80%. Market supply continues to be ample. Against the backdrop of oversupply, the phased performance of enterprise inventories has become a key factor influencing market trends. In the first half of the week, producers actively destocked, offering concessions to drive sales. Toward the end of the week, some regional units reduced loads, prompting downstream buyers and traders to replenish inventories at low prices. Enterprise inventories once again fell to low levels, causing market offers to inch up slightly.
Demand overall continues to be weak, with insufficient support for rigid demand across the downstream chain. Currently, mainstream downstream applications for dichloromethane show clear differentiation: small and medium downstream enterprises for solvents, cleaning agents, and others maintain only routine rigid-demand replenishment, with procurement on an as-needed basis becoming the standard approach. For the core downstream refrigerant R32 sector, the overall operating rate has hovered at a low 60% level for an extended period. The off-season effect in terminal industries such as air conditioners and heat pumps is prominent. Refrigerant producers have adopted an operational strategy of controlling volumes to support prices, suppressing their own production rates and limiting raw material procurement to stabilize product prices, further compressing dichloromethane procurement demand.
Overall, the dichloromethane market this week is caught in a tug-of-war between ample supply and weak demand, with holders generally adopting a cautious stance. In the near term, production is expected to decline, and some enterprises currently face minimal inventory pressure, leading to intentions to push offers higher regionally. Additionally, after destocking during this cycle, downstream buyers and traders show signs of moderate purchasing, suggesting a slight improvement in the supply-demand balance. With limited short-term sales pressure, the domestic dichloromethane market is expected to stabilize and trend slightly upward. However, fundamental demand support remains limited, so the magnitude of fluctuations is likely to be small. Attention should be paid to subsequent developments in market news.
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