Since mid-May, the domestic market price of trichloroethylene has been declining all the way, from the average price of 7,100 yuan (t price, the same below) in April, to the current 6,500 yuan, a decrease of nearly 10%, even the emergence of 6000 yuan in the south Low price. The reporter recently learned from a number of domestic key trichlorethylene producers that, at present, there is too much new production capacity of trichloroethylene, and the production volume has been gradually enlarged, while the downstream demand growth has been out of sync, and the contradiction between oversupply and demand has become prominent. This has caused the market price of trichloroethylene to decline. The key factor. This year, the trichloroethylene industry will enter the adjustment period. At the same time, as the new installations are put into operation one after another, the market supply will further increase, and the market outlook for trichloroethylene will be difficult. In the first quarter of this year, the domestic trichloroethylene market once went down all the way, but the decline was not significant. At the beginning of April, the price of liquid chlorine in the upstream raw materials rose, and the cost support effect was better. All the manufacturers tentatively raised prices, but only for a month, the manufacturers couldn’t hold off the goods, and they lowered their prices. The industry is generally not optimistic about the late-year and full-year market conditions of trichloroethylene. On the one hand, the production capacity of the domestic trichloroethylene industry is already oversupply, but the new expansion project is still in operation and new production capacity is continuously released. As of the end of 2011, the domestic production capacity of trichloroethylene has reached 400,000 tons, but the actual output is still less than 250,000 tons. The actual operating rate is only maintained at about 60%, and the overcapacity is already very obvious. At present, most companies have long-term low operating rates and full inventory. At the same time, many companies have begun to experience losses due to further cost pressures. However, many companies and investors believe that China has stepped up its implementation of the international "Montreal Protocol." HFC-134a is an alternative to ozone-depleting substances, and its demand is magnified. The demand for trichloroethylene as its raw material will increase substantially. The actual situation is that since 2011, the growth rate of downstream consumer demand for HFC-134a has not caught up with the rapid expansion of the production capacity of trichloroethylene. In addition, since July 22, 2011, China has continued to impose anti-dumping duties on the major importing countries, such as Russia and Japan, and the implementation period is still five years. This policy has also been misunderstood by many companies and investors. Although foreign low-priced products are difficult to enter, domestic excess capacity is still difficult to digest. Due to misinterpretation of favorable policies, many provinces are still planning and building new projects. According to incomplete statistics, by 2013, China's trichloroethylene capacity will add 180,000 tons. On the other hand, downstream demand is still weak. Downstream domestic consumption of trichloroethylene products is mainly based on the refrigerant HFC-134a and the detergent industry. Affected by the slowdown in domestic economic growth, since May, the market for downstream refrigerant HFC-134a has fallen, and the demand for the cleaning industry is also sluggish. It is difficult to digest the huge new production of trichloroethylene, and the price of trichloroethylene has been pushed into the upstream channel by the downstream. almost impossible. At the same time, because trichloroethylene is decomposed to a certain degree of toxicity, its use in the industrial detergent market is also decreasing. As China's environmental protection policy is increasingly strengthened, the use of trichloroethylene as a solvent will also be limited. In addition, on the export side, because Russia, Japan, and other countries have price advantages, China has only a small amount of products that can be exported to foreign countries, and the market outlook has little effect on mitigating the excess of the domestic market. Some experts also pointed out that it is not ruled out that domestic companies will reduce the operating rate in order to avoid losses and cause the price of trichloroethylene to rise in the short term. However, in the long run, the overall market conditions in the market outlook are low, and the business operation situation is not optimistic. 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