Dichloroethane Recent Commodity Market Intelligence

I. Price Trend
- National Average Price: As of May 22, 2026, the national average price across mainstream markets stood at RMB 2,855 per metric ton, down by RMB 52.5 per metric ton (a decline of 1.81%) from the previous day. Over the past seven days, dichloroethane prices have exhibited a volatile downward trend: the average price was RMB 3,000 per metric ton on May 15, and had declined cumulatively by RMB 145 per metric ton to RMB 2,855 per metric ton by May 22.
- Shandong Province Market Prices: Prices for dichloroethane in Shandong Province vary significantly depending on brand, origin, and specifications. For example, on May 23, Jinan Zesheng Chemical Co., Ltd. quoted RMB 1,750 per metric ton for industrial-grade dichloroethane (purity ≥99.9%) produced by Shanghai Chlor-Alkali Chemical Co., Ltd., whereas Qingdao Shengze Chemical Co., Ltd. quoted RMB 2,750 per metric ton for domestically produced dichloroethane (purity ≥99.9%). On May 18, quotations from select institutions within Shandong Province indicated a price range of RMB 1,650–2,800 per metric ton.

II. Supply and Demand Dynamics
- Supply Situation: The dichloroethane market has recently experienced a relaxed supply condition. Some manufacturers have increased external sales of dichloroethane due to reduced operating loads or scheduled maintenance shutdowns of downstream facilities. For instance, Xinpoo Chemical’s 500,000-ton-per-year vinyl chloride monomer (VCM) plant underwent maintenance shutdown, leading to a substantial increase in dichloroethane external sales. Although the unit has since resumed operation, constrained downstream operating loads continue to necessitate partial external sales of dichloroethane.
- Demand Situation: Downstream demand remains persistently sluggish—particularly PVC demand driven by the real estate sector—which indirectly dampens dichloroethane demand. Over 60% of end-use PVC consumption is concentrated in the real estate industry; recent efforts to deflate real estate investment bubbles and cooling property transaction activity have markedly reduced PVC demand, thereby negatively impacting dichloroethane demand.

III. Cost Support
- Raw Material Prices: Primary raw materials for dichloroethane production are ethylene and liquid chlorine. Recent geopolitical tensions have pushed up ethylene and liquid chlorine prices, providing cost support for dichloroethane. Nevertheless, despite rising input costs, dichloroethane prices have failed to rise accordingly and instead continued declining, owing to weak downstream demand.

IV. Regional Markets
- East China Market: Dichloroethane prices in the East China region have weakened under pressure from increased supply availability. With abundant market supply but insufficient downstream demand, prices face downward pressure.
- South China Market: Similarly, dichloroethane prices in the South China market have trended downward amid heightened supply volumes and lackluster demand.

Analysis and Assessment

I. Reasons for Price Decline
- Weak Demand: Persistent softness in downstream demand—especially reduced PVC demand stemming from the real estate sector—is the primary driver behind the dichloroethane price decline.
- Oversupplied Market: Increased external sales by certain producers resulting from lower downstream operating loads or facility maintenance have led to a relatively loose supply situation. Excess supply further intensifies downward pricing pressure.

II. Limited Cost Support Effectiveness
- Although rising prices of key raw materials such as ethylene and liquid chlorine provide some cost support, weak demand prevents effective cost pass-through to final product pricing, resulting in continued downward price pressure on dichloroethane.

Outlook

I. Short-Term Price Trend
- Continued Decline: Under the dual pressures of weak demand and oversupply, dichloroethane prices are expected to continue falling in the near term. The current supply-demand imbalance is unlikely to ease significantly in the short run, sustaining strong downward price pressure.

II. Medium-to-Long-Term Price Trend
- Policy and Industrial Restructuring Impact: In the medium to long term, dichloroethane price trends will be shaped by evolving policy frameworks and industrial structural adjustments. As China places greater emphasis on green development in the chemical industry and strengthens environmental regulations, dichloroethane producers will face heightened environmental compliance requirements and elevated production costs. Concurrently, shifts in downstream demand structures will also influence dichloroethane pricing—for example, growing demand from high-end applications such as electronic-grade and pharmaceutical-grade dichloroethane may open new growth avenues for the market.
- Volatile Adjustment: Amid the combined effects of regulatory developments and industrial restructuring, dichloroethane prices are likely to undergo periodic fluctuations and adjustments. Enterprises must closely monitor market dynamics and policy changes, and promptly adapt production and sales strategies to respond effectively to evolving market challenges.