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Propylene Carbonate
Dimethyl Carbonate
Propylene Glycol
Propylene Oxide

Increased Risk of Dimethyl Carbonate Callback


In the middle and late August, the dimethyl carbonate market ushered in a wave of rising tide, with an increase of nearly 10%. However, the lack of demand coupled with the positive supply and digestibility of the supply of dimethyl carbonate market risk increase.

The supply is tightening. Affected by the No. 9 strong typhoon “Litchma”, Shandong Shidaiyu Mine, Shandong Haike and Shandong Wells dimethyl carbonate plant stopped on August 11; Shandong Depu plant stopped on August 12th. The 28,000 tons/year device reduces the load to 70%. The centralized parking of the device caused a tight supply situation, and the factory repeatedly raised the ex-factory price of dimethyl carbonate. However, after the end of the typhoon, the dimethyl carbonate plant in Shandong has been resumed production. Although the Shidasheng Huajining antimony plant has a parking maintenance plan in late August, the specific time has not yet been determined. At present, the tight supply situation on the market has been effectively alleviated, and the resistance of dimethyl carbonate continues to rise.

Cost expectations are weakening. The dimethyl carbonate raw material propylene oxide was affected by the shutdown of the device in the early stage. The market is willing to increase its price, and the price has exceeded 10,000 yuan, which provides cost support for the dimethyl carbonate market. However, in late August, the propylene oxide plant in Jinpu Jinhu, Nanjing Hongbaoli and Jinling resumed production, and the supply began to increase. The downstream polyether market continued to be sluggish, the demand for terminal sponges was flat, and the macro-environmental impact, the demand for propylene oxide market was weak. Overall, the supply and demand side of propylene oxide is loose, the market price is expected to decline, and the market for dimethyl carbonate is insufficient.

Demand caused drag. The main consumption terminal of dimethyl carbonate is polycarbonate, and the rest is less traditional downstream applications such as coatings. At present, the automotive industry is suffering from a cold winter, and the demand for polycarbonate is correspondingly reduced. The tepid polycarbonate market is unlikely to drive the demand for dimethyl carbonate. Moreover, a 100,000 t/y polycarbonate plant of a company in the central region has been in trial operation, and it is difficult to improve the digestibility of dimethyl carbonate. In terms of coatings, the current real estate market is sluggish, the coatings market continues to bearish, and there is no sign of improvement in demand for dimethyl carbonate.

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