[Chemical Knowledge]：What are the factors influencing the price of dichloromethane? Detailed analysis, the price trend of dichloromethane in 2021

1. market supply and demand

Supply end

The production of dichloromethane mainly depends on the chlorine chemical industry, and its supply end is subject to the development of the upstream chlor-alkali industry. Major producing countries include China, the United States, the European Union, etc. The expansion or contraction of production capacity will directly affect the market supply. The start-up and shutdown conditions of production units, technological upgrading and the implementation of environmental policies can all lead to fluctuations on the supply side. Especially in China, as the world's largest producer of dichloromethane, its environmental protection policy and industrial structure adjustment have an important impact on the global market supply.

Demand side

Dichloromethane is widely used in a variety of industries, including pharmaceuticals, coatings, pesticides, chemical intermediates, etc. The pharmaceutical industry is its largest single consumer market, accounting for about 50%. Fluctuations in the global economy, the prosperity of various industries, and changes in market demand for downstream products will all have an impact on the demand for dichloromethane. The rapid development of emerging markets may also lead to increased demand.

2. raw material prices

The raw materials for the production of dichloromethane mainly include methane and chlorine. The price of methane is influenced by the natural gas market, while the price of chlorine is constrained by the chlor-alkali industry. Fluctuations in the price of raw materials are directly transmitted to the production cost of dichloromethane, which in turn affects its market price. In recent years, the instability of the global energy market and the imbalance between supply and demand have led to large fluctuations in the prices of methane and chlorine, which have affected the price of dichloromethane.

3. production costs

In addition to raw materials, the cost of producing dichloromethane also includes energy consumption, labor costs, equipment depreciation, and environmental protection costs. Energy consumption occupies an important proportion in the production process, and the rise in energy prices such as electricity and steam will directly increase production costs. With the improvement of environmental protection requirements, enterprises need to increase investment in environmental protection facilities and pollution treatment costs, which increase production costs and put upward pressure on prices.

4. environmental policy

The strictness of environmental protection policies has an important impact on the production and market price of dichloromethane. Dichloromethane in the production and use of the process will produce a certain degree of environmental pollution, especially on the air and water pollution. The environmental protection requirements of governments on chemical enterprises are constantly improving, and enterprises must invest a lot of money in the construction and transformation of environmental protection facilities to meet the emission standards. This not only increases production costs, but may also cause some production companies to stop production or reduce production due to environmental protection standards, thereby affecting market supply and driving up prices.

5. international trade

The international trade of methylene chloride is also an important factor affecting the price. Trade flows between major producer and consumer countries affect the supply and demand balance and price levels in regional markets. Changes in trade policy, tariff barriers, import and export restrictions will have an impact on international trade. For example, the Sino-US trade friction has a significant impact on the dichloromethane market, and changes in tariff policies on both sides will lead to market price fluctuations. The rise and fall of shipping costs and the smooth flow of logistics channels also have an impact on international trade and prices.

6. macroeconomic environment

The macroeconomic environment has a profound impact on the market demand and prices of chemical products. Changes in economic indicators such as economic growth rate, industrial production index, and fixed asset investment will affect the production and investment of downstream industries, thereby indirectly affecting the market demand and price of dichloromethane. During the economic boom, the demand for coatings and solvents in the manufacturing and construction industries increases, which drives up the demand and price of dichloromethane; during the economic downturn, demand shrinks and prices may fall.

7. technological progress

Advances in production processes and technological innovations can significantly reduce production costs, improve production efficiency, and thus affect market prices. For example, the application of new catalysts and the optimization of reaction processes may lead to a reduction in production costs and increase market competitiveness, thus putting downward pressure on prices. The development of new technologies may also lead to the development of new application areas and increase market demand.

8. seasonal factors

The price of methylene chloride is also affected by seasonal factors. Due to its wide application in pharmaceuticals and pesticides, the production of these two industries has a certain seasonality. For example, the use of pesticides is higher in spring and summer, which leads to an increase in the demand for methylene chloride and an increase in the price in the corresponding season. In winter, the price of methylene chloride may be relatively low due to reduced demand for pesticides.

9. market expectations

Market participants' expectations of future price movements also affect current prices. If the market generally expects prices to rise in the future, producers may stock up for sale, reducing market supply and thus pushing up current prices. And if prices are expected to fall in the future, producers may speed up shipments and increase market supply, leading to lower prices. Market expectations are often influenced by macroeconomic indicators, policy changes, emergencies and other factors.

Conclusion

The price of dichloromethane is affected by multiple factors, including market supply and demand, raw material prices, production costs, environmental protection policies, international trade, macroeconomic environment, technological progress, seasonal factors and market expectations. An in-depth analysis of these factors can help us to better understand the price fluctuations in the dichloromethane market and thus develop effective market strategies. With the changes in the global economy and environmental protection policies, the price trend of the dichloromethane market will also face new challenges and opportunities.