Dimethyl carbonate prices may continue to decline

Dimethyl carbonate prices may continue to decline

In April, China's dimethyl carbonate industry experienced a wave of declining prices, and the cliff-hanging type of raw material propylene oxide was undoubtedly the culprit for this wave of frustration. However, it is undeniable that the industry’s production capacity is seriously excessive, and the inter-regional plant bids take a vicious move. Cyclical competition is another major cause.

According to the data, China's dimethyl carbonate plant has a total capacity of 656,000 tons/ton (616,000 tons for transesterification and 40,000 tons for methanol oxidative carbonylation), including Yankuang Guohong and Dongying Shunxin. The 155,000-ton plant including the Fujian Ganges and Zhejiang Steel Gale continued to be shut down after it was put into operation for a short period of time. There were also some units of Taifeng Feiyang and Daqiang Group’s continuous parking.

Due to the serious overcapacity in the industry, according to the comparative analysis of the current effective production capacity and consumption capacity, the overall operating rate of dimethyl carbonate is controlled at 50% or slightly below the level, which is basically the balance between production and sales. According to a rough estimate, in April 2015 China's dimethyl carbonate production was close to 30,000 tons, and the operating rate was close to 55%, which was higher than the apparent consumption.

Zhetie Gale said that its co-production of downstream polycarbonate (PC) units reached full capacity on April 1. The current indicators are stable and have been transferred to normal production, producing 300 tons of polycarbonate pellets per day. Export sales. On May 3, it will restart its 40,000 tons of dimethyl carbonate plant. In addition, Tongling and Shida Shenghua have restarted their suspension devices during the May 1st period. According to the current maintenance plan provided by the dimethyl carbonate plant, in May, only Wells had two sets of 55,000 tons of equipment overhauled for two weeks, and Shida Shenghua three sets of 60,000 tons of small equipment for overhauling for one week. The rest of the devices have no suspension plan, and some devices have plans to increase the load.

Therefore, overall, in May, China's dimethyl carbonate industry operating rate is still slightly higher than in April, but the Zhejiang Iron and Steel Gale is mainly due to its supporting downstream PC for self-use, and the overall supply of dimethyl It will not have much impact.

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