SunSirs: Under the Dual Support of Supply and Demand, Dimethyl Carbonate Rose by More Than 25% in Four Days

　　Price trend

　　According to the monitoring data of SunSirs, as of August 5, the average ex-factory price of domestic industrial-grade dimethyl carbonate was 10,333 RMB/ton. Compared with the price on August 1, 2021 (reference price 8,233 RMB/ton), the average price was raised by 2,100 RMB/ton, an increase of 25.51%.

　　Analysis review

　　Entering August, a large factory in Dongying area of Shandong had a shutdown plan for the dimethyl carbonate plant. The supply of dimethyl carbonate was tight, the on-site inventory was low. With reduced supply, the market price of dimethyl carbonate has continued to rise since the 2nd of the month. In addition, stimulated by the shortage of stocks, the purchasing sentiment of the downstream factories of dimethyl carbonate was positive, and the downstream demand increased. The supply of large factories in Anhui was tight, and the outbound orders were temporarily unavailable, and the spot tension continued to spread. Supported by both the reduction in supply and the increase in demand, the market price of dimethyl carbonate ushered in a substantial increase in the past two days. As of August 5, in just 4 days, the market reference price of dimethyl carbonate rose to around 9,700-10,800 RMB/ton, and the high-end price reached 11,000 RMB/ton. Compared with the beginning of August, the market’s biggest increase reached 2,900 RMB/ton. According to the data monitoring of SunSirs, on August 5, the domestic reference average price of dimethyl carbonate ex-factory was 10,333 RMB/ton. Compared with the beginning of the month, the average price increased by 2,100 RMB/ton, an increase of more than 25%.

　　As for the related product, propylene glycol, as of August 5, the domestic propylene glycol market as a whole was based on stable consolidation, and the ex-factory price of propylene glycol in some Shandong factories rose slightly. The downstream of propylene glycol was mostly based on just-needed purchases. A large propylene glycol production plant in Shandong opened a new propylene glycol plant, and the on-site supply was relatively sufficient In terms of raw materials, the propylene oxide market has continued to rise since August, giving propylene glycol cost support. As of August 5, the domestic market price of propylene glycol was around 16,900-17,200 RMB/ton, which was an increase of 200-500 RMB/ton compared with the beginning of the month. According to the data monitoring of SunSirs, the average ex-factory reference price of propylene glycol in China was 17,066 RMB/ton, compared with the price on August 1, the average price increased by 466 RMB/ton, an increase of 2.81%.

　　In terms of upstream propylene oxide, as of August 5, the propylene oxide market reference price was around 16,400-17,300 RMB/ton, compared with early August, the price was increased by around 300-1,000 RMB/ton. According to the data monitoring of SunSirs, as of August 5, the reference price of propylene oxide was 16,925 RMB/ton, which was an increase of 3.83% compared with August 1 (16,300 RMB/ton).

　　Market outlook

　　At present, downstream factories still maintain a relatively high enthusiasm to obtain goods when dimethyl carbonate is at a high level. Therefore, the dimethyl carbonate analysts of SunSirs believe that in the short term, the domestic dimethyl carbonate market will continue to run at a high level.