In the second half of October, the overall trend continued to decline and fluctuate weakly. As of October 28th, the average price of industrial grade dimethyl carbonate in China was 5866 yuan/ton, a decrease of 2.76% compared to the middle of the month.
Analysis of Market Driving Factors
Supply side: After the resumption of production, the spot supply capacity of the device has improved, and the inventory pressure of some manufacturers has increased, resulting in an increased willingness to ship.
Demand side: The demand for electrolyte solvents has weakened significantly, and downstream demand for industrial grade multidimensional rigid procurement is limited, with limited acceptance of high prices.
On the cost side, the recent trends of methanol and epichlorohydrin have diverged, and the cost support has loosened compared to the previous period, making it difficult to sustain the upward movement of DMC.
Market forecast:
Short term dimethyl carbonate is likely to maintain weak stability and oscillation, with insufficient driving force for further significant increases.
Shortfall factor: With sufficient supply, industry operating rates recovering, and ample supply circulation, if factory inventory continues to accumulate, manufacturers may increase the frequency of flexible adjustments to their offers. Weak demand has led to a certain reduction in terminal consumption, with a more significant weakening in the demand for electrolytes and solvents. Other downstream industries tend to maintain on-demand procurement or follow up on urgent needs, making it difficult to effectively digest the newly added supply.
Supporting factors: If methanol and epichlorohydrin strengthen again, or if downstream inventory replenishment and foreign trade orders rebound, prices may receive temporary support.
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