Due to the reduction or shutdown of some devices, there is some support on the supply side in Shandong, and the enterprise’s offer is stable with an upward trend. However, downstream demand is limited, and rigid procurement is the main focus. The supply-demand game suppresses the increase. According to the monitoring of the commodity market analysis system of Shengyi Society, as of July 14th, the average price of dichloromethane dispersed water in Shandong Province was 2237.5 yuan/ton, with a weekly increase of 0.9% and a year-on-year decrease of 10.32%.
analysis of influencing factors

Supply side: Device load reduction and inventory decrease, supporting prices
Device dynamics: The overall industry production has fallen to around 70%, and supply is becoming tight.
Inventory pressure: Enterprise inventory has generally decreased, and downstream suppliers have made slight restocking in anticipation of price increases.
Cost side: methanol drops, liquid chlorine rises, insufficient cost support
Methanol: Accumulated port inventory, weak demand, weak and volatile methanol market, bearish for dichloromethane cost support. As of July 14th, the benchmark price of methanol in Shengyi Society was 2378.33 yuan/ton, a decrease of 1.84% during the week.
Liquid chlorine: The demand in the Shandong market is slowly recovering, and the price of liquid chlorine has slightly increased.
On the demand side: seasonal suppression, with rigid procurement as the main focus
Dichloromethane is widely used and is often purchased at low prices and in high demand. Part of the downstream (coatings, adhesives) are affected by high temperatures, rainy seasons, and environmental inspections, resulting in insufficient production and weak demand.
Refrigerants are still in the peak demand season, and the R32 domestic and foreign trade markets remain tight, with supply and demand dominating the market to maintain stability and explore growth. Under the high proportion of self-produced raw material dichloromethane enterprises and quota restrictions, the increase in external procurement is limited. The demand for dichloromethane is limited.
Future prospects
It is expected that the market supply will remain tight in the short term, and prices may continue to rise slightly. But there is no significant improvement in demand, and the increase is limited. We also need to pay attention to device dynamics, inventory changes, and downstream order follow-up.