In August, the overall low-level horizontal trend of trichloromethane in China was observed. As of August 20th, the price of trichloromethane in Shandong was 2066 yuan/ton, unchanged from the beginning of the month.
At the beginning of the month, the market continued its weak pattern as of the end of July, with manufacturers still facing pressure to ship. Downstream buyers tend to purchase on demand, and market transactions are mainly driven by essential needs, with a lack of upward price drivers. The demand for refrigerants during the mid month peak season has increased, and the start of R22 units has increased, leading to an increase in the purchase of trichloromethane. The demand for pharmaceutical and pesticide solvents remains stable, and market trading has rebounded, but overall it is stabilizing.
In the early stage of the supply side, most of the equipment maintained normal load. In the middle of the month, the 100000 tons/year methane chloride equipment in Huichang was shut down, and short-term supply contraction was expected in some areas. However, the overall production capacity of the industry was abundant during the month, and large equipment was producing normally. The overall supply remained loose, restricting the upward space.
The significant increase in methanol prices on the cost side and limited fluctuations in liquid chlorine have provided support for the market. According to data from Shengyi Society, as of August 20th, the spot price of methanol was 2870 yuan/ton, an increase of 9.19% from 2628 yuan/ton at the beginning of the month.
Market forecast: Short term market stability and consolidation. If the geopolitical risks in the Middle East continue to rise in the later stage, driving up the price of methanol will raise the cost center of trichloromethane. We need to pay attention to downstream production and raw material conditions in the later stage.
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