Domestic dichloromethane (DCM) prices stabilized in the previous session, following a decline during the holiday period. The price drop stimulated some restocking activity from traders and downstream buyers, supporting decent shipment levels for producers, especially those offering lower prices, and helping to reduce inventories.
However, underlying demand remains weak. Most solvent end-users reported sluggish pickup demand, while export clients cited scarce new orders, leading to an overall bearish outlook on the consumption side. Market purchasing capacity is limited despite the opportunistic buying.
Key Market Drivers:
Inventory: Producer inventories are at medium levels overall, while stocks held by downstream users and traders remain low-to-medium.
Cost: The continued rise in liquid chlorine prices is providing strong cost support for DCM, cushioning against potential downside.
Demand: Shipments are expected to be acceptable today, likely keeping producer inventories stable. However, fundamental demand from end-use sectors is the primary market constraint.
Price Forecast:
Prices are expected to remain largely stable in major markets today.
Shandong Region: Prices are forecast to hold within the range of RMB 1,630 – 1,680 per tonne.
Jiangsu-Zhejiang Region: Prices are anticipated to be stable, ranging between RMB 1,600 – 1,870 per tonne.
The market is currently caught between firm cost support and tepid demand, likely resulting in sideways movement in the near term.
Post time: Jan-05-2026