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Methylene Chloride : fundamental impact, frequent market fluctuations in the first quarter

Views: 0     Author: Site Editor     Publish Time: 2022-04-16      Origin: Site

In terms of price, the Methylene Chloride  market fluctuated frequently in the first quarter of 2022. At the end of March, the low-end price in Shandong market was 16.37% lower than that at the end of last year. During the period from New Year's day to the Spring Festival, the market as a whole was in a high and falling stage. The maintenance devices in the early stage of the year basically returned to normal, and the supply of resources was relatively abundant. The downstream resisted high priced raw materials, and the market focus mainly fell. Before the festival, some operators went on a bargain hunting to replenish the warehouse, and the market regional trends were different. During the Spring Festival, the device load of some enterprises decreased, the overall supply pressure of the market was ok, and the operation was relatively stable. After the festival, the logistics gradually recovered, some downstream started to prepare goods, and the maintenance news of Jinling Dongying plant continued to ferment in mid February. Under the expectation of reduced supply, the mentality of the operators was strong. However, with the rising price, the cost of downstream enterprises was under pressure, and the market turned weaker under the restriction of demand. In the first ten days of March, as the price fell to a low level, the inventory of some enterprises was not under pressure, and the market rebounded from the bottom. There were still enterprises in Shandong for maintenance. The upstream methanol and liquid chlorine were relatively strong and volatile. Under the favorable supply and cost side, some enterprises delivered goods in limited quantities, and the market bullish atmosphere was strong. However, as the price rose to a high level, the downstream maintained more rigid demand for procurement, and the domestic epidemic situation was severe, which had a great impact on the production, logistics and transportation of upstream and downstream enterprises, The price cut sales led by the shipment of enterprises and the attitude of the operators to buy up but not to buy down, they mostly take a wait-and-see attitude towards the future market, and the market negotiation atmosphere gradually weakens.

In terms of supply, the supply of goods in the Methylene Chloride  market was generally loose in the first quarter. The average daily operation level of enterprises in the first quarter was 64.48%, while it was about 54.45% in the fourth quarter of last year, with an increase of 18.42%.

In the later stage, in terms of liquid chlorine at the raw material end, there are different epidemic control policies in each region. Regional enterprises such as smooth transportation have no delivery pressure for the time being. The control is strict, and regional transportation and construction are affected. It is expected that there are still some increases in areas with smooth transportation, which can be adjusted flexibly according to their own conditions; In terms of methanol, on the whole, the balance between supply and demand is still deadlocked. It is expected that the methanol price may remain in the current range, and there is little room for decline under the background of spring inspection. In the Methylene Chloride  market, the epidemic affected the logistics and transportation, and there was still some resistance to the circulation of goods. However, on April 9, Dongyue, Shandong, stopped for maintenance and repair. Under the favorable supply, the market bottomed out and rebounded. However, some shutdown and repair devices in the early stage of late October are expected to restart. In the short term, domestic Methylene Chloride is expected to rise slightly, but the increase is limited.

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