Methylene Dichloride prices experienced variability around the world during the week ending 11 July 2025 and witnessed slight strengthening in India and China, while it was steady in the U.S. Gulf Coast.
In India, Methylene Dichloride prices increased by 0.5%, primarily owing to supply-side constraints. Prolonged port congestion in Europe, predominantly in Germany and the Netherlands, had delayed incoming chemical shipments of Methylene Dichloride and tightened supply at Indian ports. Although feedstock methanol prices were roughly 3% lower, due primarily to strong inflows from Iran and the rest of Southeast Asia, and while this did provide a marginal amount of support, price value did not benefit significantly because Methylene Dichloride in India is almost exclusively imported. Demand was varied, with activity in the pharmaceutical sector keeping steady and providing some minimal supporting activity, but demand from paint, coatings, and polyurethane foam applications weakening due to the weather-induced construction slowdown. Overall, the Methylene Dichloride price increase was a result of supply-side dynamics with less impact of demand on it.
Methylene Dichloride prices in China increased by 0.7% supported by lower production due to plant maintenance and load reductions at large producers such as Jiujiang Jiuhong and Luxi. Although feedstock methanol prices were stable, the support from chlorine costs was weakened as a result of a decrease in liquid chlorine prices. All downstream sectors remained subdued except for refrigerant production and R32, which added some seasonal support. The coatings and adhesives sectors were limited by environmental inspections, hot summer conditions, and rain. Methylene Dichloride prices were slightly higher despite weak demand due to the tightening supply.
Meanwhile, Methylene Dichloride prices on the U.S. Gulf Coast stayed flat. Methanol feedstock costs were stable, and Methylene Dichloride solvent production was unaffected by any production or logistical disruptions. Export demand from warmer spots, such as Mexico, Venezuela, and Australia, provided some moderate support, while Canadian offtake fell off on balance after cooler temperatures in July. Other than the stabilizing demand from exports, no improvement occurred domestically. Activity in domestic pharmaceuticals, adhesives, and coatings was muted, and buyers on all sides of the transaction fell out of speculative purchases.
As per ChemAnalyst, in the coming weeks, Methylene Dichloride prices are expected to remain cautiously firm in Asia due to ongoing supply concerns from plant turnarounds and logistical constraints, particularly in India and China. However, weak downstream demand, especially from coatings, adhesives, and construction-related sectors, may limit significant price gains. In the U.S., prices are likely to stay stable amid balanced supply-demand fundamentals and steady export activity.
