Global Methylene Dichloride Market Witnesses Bearish Trade Amidst Adequate Supplies
- 06-Feb-2023 3:19 PM
- Journalist: Bob Duffler
New York, US- With the stabilization of feedstock Methanol prices, the trading fundamentals of Methylene Dichloride remain feeble, and suppliers are purchasing the product immediately. With the week ending on 3 Feb 2023, the price of Methylene Dichloride in the US was observed to be at USD 890/ton FOB Louisiana. The reduced export volumes resulted from weak market fundamentals in South America and overflooding inventories.
The market for Methylene Dichloride in the US remains muted, with limited purchasing activities resulting in supply exceeding the demand. The demand for Methylene Dichloride in downstream industries like paint and pharmaceuticals remains low. With slow market offtakes, manufacturers reduced their product prices to clear existing stocks.
In China, the market fundamentals remain affected by increasing product stocks and weak trading fundamentals. Methylene Dichloride prices rose gradually before the Spring Festival due to low downstream stocks. Downstream demand from paint remover manufacturing and the pharma sector did not recover significantly after the Spring Festival, and the suppliers of Methylene Dichloride remain skeptical about increasing the price trend. In terms of the feedstock market, Methanol also followed a stable price trend with weak spot discussions. The exports of Methylene Dichloride from China to other Asian regions traded on a need-to basis with revisions in the price trend for the overseas suppliers. With the week ending on 03 Feb 2023, the price of Methylene Dichloride in China was 412/ton FOB Qingdao.
According to ChemAnalyst, the Asian Methylene Dichloride market is anticipated to follow an uptick in purchasing activity with continuous utilization of inventories from the downstream enterprises. In terms of the feedstock market, Methanol prices will increase with firmer spot price discussions and higher product bidding from the downstream enterprises. With the expectation of improvement in spot prices, the Methylene Dichloride market in the US market will improve with tepid market fundamentals.