Indian Methylene Dichloride Prices Persistently Fall Due to Less Cost Support from Feedstock
- 01-Feb-2022 6:08 PM
- Journalist: S. Jayavikraman
In the last quarter of 2021, in the Methylene Dichloride sentiments in the Indian domestic market, the offers for Methylene Chloride plunged drastically despite soaring to an all-time high. This uptrend is majorly attributed to the Natural Gas shortages in the international market. The constant ministerial-level talks of the OPEC+ alliance decided to increase the production levels of Crude Oil to 400,000 barrels per day which proportionally impacts the Natural gas price. In response, it boosted the imports volume of Natural Gas and Methanol from the middle east, but the imports from China were halted because of the disruptions caused by the floods and shortage of upstream coupled with the power crisis in China.
Whereas, the Indian drug association urged the Indian government to intervene in the uncontrolled hike in the raw material prices which was denting their profit margin and pushing them toward potential losses. Whereas, the imports of Methylene Dichloride from China improved despite high premiums eased the supply glut in the Indian domestic market. As a ripple effect, the offers for Methylene Dichloride were eased drastically in India.
Methylene Dichloride was also termed Dichloro Methane is an organochloride compound, it is a colorless, volatile liquid with a chloroform type odor. It is obtained naturally in oceanic sources such as macroalgae, wetlands, and volcanoes and is also manufactured by treating the chloromethane with chlorine gas at 4000C. It has numerous capabilities but most importantly it can dissolve a wide range of organic compounds which unlock an adverse range of applications in the Pharmaceutical sector.
As per ChemAnalyst, the offers for Methylene Dichloride eased by 120% since October end in 2021, prior that due to the supply glut the offers for Methylene Dichloride observed a sharp uptrend of 43% within October 2021 due to the high raw material prices coupled with the high freight charges.