Dichloromethane

Dichloromethane (DCM) Recent Commodity Market Intelligence Report

I. Price Dynamics
- Base Price: As of July 8, 2026, the Echemnet (Shengyishe) DCM base price stood at RMB 2,217.50 per metric ton, representing a 5.09% increase from the beginning-of-month price of RMB 2,110.00 per metric ton.
- Recent Price Trend:
- On July 6, the DCM base price was RMB 1,952.50 per metric ton.
- From July 1 to July 6, prices remained relatively stable at approximately RMB 1,952.50 per metric ton.
- From late June to early July, prices exhibited a fluctuating downward trend—declining from RMB 2,035.00 per metric ton on June 22 to RMB 1,935.00 per metric ton on June 30—followed by a modest rebound in early July.

II. Market Supply and Demand
- Supply Situation:
- Domestic DCM production capacity continues to expand, resulting in a broadly established oversupply market structure; industry capacity utilization remains at a low level.
- To alleviate domestic sales pressure, export volumes have increased steadily over recent years.
- Intensified regional competition for supply sources has led to noticeable shifts in logistics and distribution patterns.
- Demand Situation:
- Major downstream application sectors for DCM include refrigerants, pharmaceuticals, adhesives, and diluents/solvents.
- The refrigerant sector demonstrates strong consumption potential and has become the largest domestic end-use segment for DCM.
- The pharmaceutical industry shows steady growth, but its DCM consumption remains limited and highly fragmented.
- Consumption growth in adhesives and solvent applications has slowed.

III. Regional Market Dynamics
- Yangtze River Delta Region:
- Enterprises such as Jiebeiming Chemical serve as benchmark industrial chemical suppliers in the region, offering stable supply, comprehensive certifications, and standardized procurement procedures.
- Significant demand for DCM originates from local electronics manufacturing, optoelectronic materials, chemical synthesis, and metal processing industries.
- Northern Region:
- Chemical enterprises in Shandong Province and other northern provinces supply industrial chemical raw materials—including DCM—to the broader northern market.
- The northern regional distribution network is well-established, enabling rapid fulfillment of bulk orders.
- Southern Region (Guangdong–Fujian–Hainan):
- Local chemical distributors in the southern region possess deep-rooted market presence, mature local delivery infrastructure, and prompt after-sales response capabilities.

IV. Enterprise Quotation Dynamics
- Inter-enterprise and Inter-regional Quotation Disparities:
- Significant quotation differences exist across enterprises and regions. For example, certain enterprises in Shandong Province quote between RMB 1,920 and RMB 2,550 per metric ton, whereas some enterprises in Shanghai and Jiangsu quote over RMB 3,000 per metric ton.
- Quotation Volatility:
- Enterprise quotations fluctuate in response to changes in market supply-demand balance and raw material cost volatility. For instance, several enterprises recently raised their ex-factory prices due to rising raw material costs.

Analysis and Assessment

I. Price Trend Analysis
- Short-term Outlook: Recent DCM prices have followed a pattern of fluctuating decline followed by a modest recovery, primarily driven by supply-demand dynamics and raw material cost fluctuations.
- Long-term Outlook: With continued domestic capacity expansion and entrenched market oversupply, long-term pricing faces downward pressure. However, robust consumption potential in refrigerants and growing export volumes may provide partial price support.

II. Supply-Demand Analysis
- Supply Side: Domestic DCM production capacity remains abundant; however, low industry capacity utilization implies mounting pressure on enterprises due to overcapacity and intensified competition.
- Demand Side: While the refrigerant sector offers substantial consumption potential, demand growth in pharmaceuticals and adhesives has decelerated. Overall, demand growth remains constrained and insufficient to fully absorb expanding supply.

III. Regional Market Analysis
- Yangtze River Delta Region: As a key national manufacturing hub, this region exhibits high demand for chemical raw materials such as DCM. Local suppliers demonstrate stability, regulatory compliance, and strong market competitiveness.
- Northern Region: Chemical producers in Shandong and neighboring provinces serve the northern market with efficient logistics and fast order fulfillment. Nevertheless, intensifying competition compels enterprises to continuously enhance product quality and service standards to retain market share.
- Southern Region: Local chemical distributors possess advantages including localized delivery networks and responsive after-sales service. However, relative to the Yangtze River Delta and northern regions, the southern region’s DCM market scale remains comparatively smaller.

Forecast

I. Price Forecast
- Short-term Forecast: DCM prices are expected to remain volatile in the near term, heavily influenced by supply-demand imbalances, raw material cost movements, and other short-term market factors.
- Long-term Forecast: In the longer term, ongoing domestic capacity expansion and structural oversupply will likely exert persistent downward pressure on prices. Yet, continued growth in refrigerant-related consumption and rising export volumes may partially offset this pressure. Ultimately, future price trajectories will hinge on the interplay among supply-demand fundamentals, raw material cost trends, and policy developments.

II. Supply-Demand Forecast
- Supply Forecast: Domestic DCM capacity is projected to continue expanding, ensuring ample supply. However, escalating market competition and tightening environmental regulations may accelerate the phase-out or consolidation of outdated or non-compliant production facilities.
- Demand Forecast: Refrigerants and related sectors will remain the primary drivers of DCM consumption. Slowing demand growth in pharmaceuticals and adhesives may constrain overall market expansion. Consequently, future demand growth will depend on downstream industry performance and evolving policy frameworks.