1、 Price trend

According to the Commodity Market Analysis System of Business Society, the average market price of dichloroethane in China was 2770 yuan/ton on May 31st, and the average market price of dichloroethane in China was 2716 yuan/ton on May 1st. The market price of dichloroethane increased by 1.96% within the month.

2、 Analysis and Review

In May, the production of dichloroethane started steadily, with normal shipments and some enterprises undergoing equipment maintenance. According to customs data statistics, China did not import dichloroethane in the first quarter of this year. In April, the import volume of dichloroethane in China was 16269.322 tons, an increase of 59% compared to last year. Downstream enterprises were actively outsourcing, and China’s economy recovered moderately. The enthusiasm of the domestic market is average, and the trading atmosphere is still stable. Affected by downstream price increases, dichloroethane manufacturers have slightly increased their prices and are watching.

Cost side:

The focus of the Asian ethylene market has shifted downwards, with an average CFR price of $855/ton in Northeast Asia, a decrease of $50/ton from the beginning of the month; The average CFR price in Southeast Asia is $955 per ton, a decrease of $55 per ton from the beginning of the month. The domestic ethylene quotation in East China is 7300 yuan/ton, a decrease of 150 yuan/ton from the beginning of the month, and the market situation is fluctuating and weakening.

Demand side:

The downstream price of vinyl chloride is 5300 yuan/ton, an increase of 350 yuan/ton from the beginning of the month. Entering May, PVC futures spot prices have surged one after another, and the domestic real estate sector has repeatedly released positive news. The market has fluctuated and risen, reaching a new high in nearly half a year. At the end of the month, the bullish sentiment triggered by favorable policies gradually subsided, and PVC futures returned to being dominated by fundamentals. Driven by the favorable futures market, the current spot market for ethylene based PVC in East China is priced at 6200 yuan/ton, an increase of 250 yuan/ton from the beginning of the month. However, PVC social inventory remains high, and downstream demand remains weak.

3、 Future Market Forecast

Business Society’s dichloroethane analyst believes that as costs decline and demand shows an upward trend, it is expected that the price of dichloroethane will remain stable in the near future.