In August, the dichloromethane market continued its upward trend from July. In mid August, the average price of dichloromethane in Shandong reached a high of 2800 yuan/ton, an increase of 7.9%, before falling back and rebounding today. According to the Commodity Market Analysis System of Shengyi Society, as of August 29th, the average price of dichloromethane bulk water in Shandong Province was 2540 yuan/ton, a monthly decrease of 2.12%.

The cost of raw materials has decreased, and methanol liquid chlorine continues to fluctuate weakly in August; The operating rate of methane chloride plants has slightly decreased. In the first half of the month, there was good news on the demand side, and the National Health Commission approved dichloromethane as an extraction solvent. Enterprises have a strong willingness to raise prices, and the market continues to rise. However, there is a strong wait-and-see sentiment on the demand side, and the market transaction atmosphere is weak. The extent of enterprise destocking is not significant. In the second half of the month, market inventory is under pressure, and factory quotations are declining one after another. Urgent replenishment is needed to support it. Currently, market trading is still acceptable, and enterprises are maintaining production and sales balance or slightly reducing inventory. Today, enterprise prices have rebounded. As of August 29th, the ex factory price of mainstream dichloromethane in Shandong region is around 2520-2560 yuan/ton.

Supply side: Due to the low load and maintenance of some devices, the domestic production of methane chloride has slightly decreased.

In terms of raw materials, methanol, the raw material, continued to fluctuate weakly in August. According to the Commodity Market Analysis System of Shengyi Society, as of August 29th, the spot price of methanol was 2505.83 yuan/ton, a decrease of 0.17% from the beginning of the month. The contradiction between supply and demand in the liquid chlorine market has intensified, hindering the upward trend and continuing the market weakness.

In terms of demand, dichloromethane has a wide range of applications and can be used in film solvents, pharmaceuticals, pesticides, paint removers, refrigerants, and other fields. On July 25th, the National Health Commission issued a notice on eight “three new foods” including arabinoxylan. According to the provisions of the “Food Safety Law of the People’s Republic of China”, the evaluation agency organized experts to review and approve the safety assessment materials of various substances applied as new varieties of food related products. This includes the application of dichloromethane as a new type of processing aid for the food industry, used in the tea de coffee process. Expanded the demand market for dichloromethane. Downstream refrigerant R32 is produced according to the quota and is urgently needed for procurement. Recently, the Ministry of Ecology and Environment issued a notice on the arrangements for the remaining quota of hydrofluorocarbons in 2024. Add 35000 tons of R32 production quota for internal use. The proportion of R32 domestic production quotas for each production unit remains unchanged before and after the adjustment. The increase in demand for dichloromethane has provided favorable support for its price.

Business analysts believe that the Golden September and Silver October are about to begin, and downstream suppliers will stock up and purchase. The demand side is supported by positive news, and companies have a strong willingness to raise prices. It is expected that the dichloromethane market will remain stable and rise in September.