There are expectations of a reduction in the supply of dimethyl carbonate, and prices are likely to continue rising

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There is an expectation of a decrease in the supply of dimethyl carbonate, and its price is expected to continue rising. Author/Source: Hualu-Hengsheng New Energy. Date: January 26, 2022. Click-through rate: 24. Since the beginning of 2022, thanks to high operating rates in downstream industries and proactive inventory buildup ahead of the Spring Festival, demand has been significantly boosted. Coupled with a reduction in supply, this has led to a supply-demand imbalance, causing the price of dimethyl carbonate to keep climbing. Thus, it has demonstrated a rather strong growth trend at the start of the year. From the demand side, there is strong support for demand. Firstly, the leading companies in the electrolyte sector have full production schedules and are highly motivated to stock up supplies, which in turn drives high operating levels in industries related to electrolyte solvents such as ethyl methyl carbonate (EMC) and diethyl carbonate (DEC), as well as in industries producing electrolyte additives like VC and FEC ； Due to the impact of the pandemic, imports of polycarbonate have been restricted; as a result, two new production facilities in China have started operating successfully, leading to an increased demand for DMC ； The high-end electronic chemicals industry, particularly in the field of developing solutions, remains stable in terms of operations, which in turn provides steady demand for DMC. From the supply side, recent frequent failures in some production facilities have led to a reduction in overall supply. With the Winter Olympics approaching, further declines in supply are expected. Some DMC manufacturers have received orders to limit production, and tight supply conditions are likely to persist in the future.