For the Quarter Ending March 2025
North America
In Q1 2025, the North American Methylene Dichloride (MDC) market recorded a marginal price decline of 0.06% compared to the previous quarter. The overall market remained largely stable, with steady supply levels and moderate demand from key downstream sectors such as pharmaceuticals, agrochemicals, and coatings.
Early in the quarter, balanced supply-demand dynamics and resilient performance in the construction and automotive sectors supported price stability. However, as the quarter progressed, weakening demand in the construction and polyurethane segments, coupled with declining feedstock costs, particularly methanol, applied downward pressure on the Methylene Dichloride market. Manufacturing activity operated at reduced rates, but consistent inventory and restocking behavior helped avoid supply shortages.
Despite lackluster demand in the coatings industry and cautious procurement patterns, demand from the pharma and agrochemical sectors provided some support. The overall market sentiment remained subdued, with buyers concentrating on short-term needs amid ongoing economic uncertainty. The quarter closed with stable, yet soft market conditions, driven by cost dynamics and moderate end-use consumption.
APAC
During Q1 2025, the APAC Methylene Dichloride (MDC) market witnessed a net price decline of 13.8% compared to the previous quarter. The quarter began with a modest price uptick driven by elevated freight costs and robust demand from China’s polyurethane, paints, and coatings sectors. However, this bullish sentiment was short-lived. By late January, MDC prices plunged due to declining feedstock costs, ample supply, and weakened demand ahead of the Lunar New Year. February saw a brief price stabilization, supported by post-holiday restocking and supply disruptions from maintenance shutdowns. Nevertheless, oversupply and subdued downstream activity exerted bearish pressure, prompting producers to cut prices. March displayed volatility—prices first declined due to high inventories, then surged mid-month on maintenance news and recovering refrigerant sector demand, before softening again by month-end amid cautious procurement. Overall, the quarter was characterized by fluctuating market fundamentals, with supply-demand imbalances and external pressures such as geopolitical tensions and seasonal demand shifts shaping the pricing trajectory.
Europe
In Q1 2025, the European Methylene Dichloride (MDC) market witnessed a price increase of 4.34% compared to the previous quarter, driven by a mix of stable supply and shifting demand dynamics. Early in the quarter, prices fluctuated slightly due to steady feedstock methanol costs and persistent logistical disruptions at key ports like Hamburg and Rotterdam. Despite challenges, manufacturers maintained consistent output, supported by ample inventories and stable raw material availability. The paints and coatings sector provided steady demand, while the polyurethane and construction sectors showed weakness due to declining new orders and prolonged destocking. Mid-quarter, logistical pressures and rising methanol costs briefly pushed prices higher, though balanced market fundamentals kept volatility in check. Toward the end of the quarter, demand from the pharmaceutical and agrochemical sectors remained resilient, helping stabilize prices despite subdued activity in automotive and coatings. Overall, the market was shaped by stable supply, resilient end-use demand, and cautious buying behavior, contributing to a modest upward price trajectory.
For the Quarter Ending December 2024
North America
Methylene Dichloride prices in the U.S. market displayed a dynamic trend during the final quarter of 2024, marked by fluctuations influenced by both stable feedstock costs and shifts in demand. In October, prices declined due to limited downstream demand, particularly from sectors such as pharmaceuticals and paints and coatings. This was further supported by consistent feedstock costs, as Methanol prices remained steady in response to balanced natural gas and coal markets globally.
However, in November, the market sentiment turned cautiously optimistic, driven by a slight increase in domestic demand from the paints and coatings industry. External factors, such as political developments, also fostered a more restrained approach among market participants.
By December, the market experienced a notable surge in prices, fuelled by strong industrial activity and heightened seasonal demand across key sectors like adhesives, coatings, and pharmaceuticals. Supply chain challenges and potential labour disruptions further amplified the upward trend, creating a favourable market environment for producers. This evolving landscape highlights the interplay of demand, supply, and external market conditions shaping Methylene Dichloride pricing.
APAC
In Q4 2024, Methylene Dichloride prices in the Chinese market reflected a mix of trends, showcasing both surges and declines driven by shifting market dynamics, however, the prices showcased significant rise when compared to the Q3 2024. In October, prices rose due to increasing feedstock costs, including Methanol and liquid chlorine, alongside reduced operating rates of production units. By November, prices surged as demand from sectors like paints and coatings gained momentum, bolstered by improved market performance and external influences such as cautious sentiment surrounding international events. However, as the year-end approached, the market faced a weakened trading atmosphere, with imbalanced supply-demand dynamics leading to a decline in prices. While some producers reduced equipment loads to manage inventory, others restored capacity, resulting in stable overall operations. The refrigerant market, particularly in the air conditioning sector, experienced robust demand supported by national subsidies, while other applications leveraged competitive pricing for restocking. These factors collectively shaped the quarter’s dynamic pricing trends for Methylene Dichloride.
Europe
Methylene Dichloride prices in the European market displayed mixed trends in Q4 2024, influenced by stable feedstock costs, fluctuating demand, and evolving global market dynamics. In October, prices declined due to consistent feedstock costs, particularly Methanol, and subdued demand from downstream industries such as pharmaceuticals and paints and coatings. This stability in raw material pricing helped maintain steady production costs but limited market activity. By November, a seasonal increase in demand from the paints and coatings sector drove prices upward, supported by supply chain challenges that constrained feedstock availability. Despite this, the market exhibited stability in mid-November, as external factors like the U.S. election introduced caution into trading activities. However, December brought a sharp rise in Methylene Dichloride prices, driven by significant supply disruptions in the Methanol market across the U.S. and Europe. These disruptions tightened feedstock availability and elevated production costs, amplifying market pressures. The combination of constrained supply, robust seasonal demand, and heightened production costs shaped a volatile yet upward trend for Methylene Dichloride prices toward the end of the quarter.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for Methylene Dichloride displayed an overall upward movement in pricing, primarily driven by robust demand across key sectors. Industries such as the solvent sector have shown heightened demand for Methylene Dichloride, which significantly influenced the pricing dynamics in the region. This consistent demand strength offset the relatively stable feedstock costs, contributing to a bullish market sentiment and resulting in incremental price increases throughout the quarter.
Focusing specifically on the USA, this region recorded the most pronounced price changes within North America. Despite a generally negative comparison with prices from both the same quarter last year and the preceding quarter, the USA market saw gradual price increases in the second half of Q3. This trend was influenced by a variety of external factors, including supply chain disruptions and potential labour actions, which added complexity to the market landscape and indirectly impacted Methylene Dichloride prices.
By the quarter’s end, Methylene Dichloride reached USD 545/MT FOB Louisiana in the USA, marking a slight yet steady positive trend. The progressive increase across July, August, and September illustrates a stable pricing environment with an underlying bullish sentiment driven by robust demand and logistical challenges. Overall, the quarter ended on a cautiously optimistic note for the Methylene Dichloride market in North America.
APAC
Throughout Q3 2024, the Methylene Dichloride market in the APAC region experienced an upward trend in prices, driven by various market dynamics. Demand surged across industries such as paints, coatings, adhesives, and pharmaceuticals, fuelled by increased industrial activities and anticipation of higher seasonal demand due to upcoming festive periods. Stable feedstock costs, coupled with improvements in manufacturing output, further reinforced the positive pricing environment, indicating healthy market conditions. In China specifically, the market displayed the most substantial price fluctuations within the region. The continuous upward trend in prices was attributed to strong market sentiments and consistent demand from industrial sectors. Seasonal factors contributed to steady price increments throughout the quarter. Compared to the same quarter in the previous year, prices remained lower, yet a noticeable increase was observed from the previous quarter in 2024, highlighting a positive quarterly growth trajectory. The quarter concluded with Methylene Dichloride priced at USD 330/MT on an EXW Qingdao basis in China, reflecting an optimistic pricing landscape driven by sustained demand and robust industry activity.
Europe
In Q3 2024, the Methylene Dichloride market in Europe exhibited stable pricing trends, with Germany experiencing minor fluctuations. This stability was largely attributed to balanced demand from industries such as pharmaceuticals and coatings, which supported steady consumption levels. Feedstock Methanol prices remained relatively consistent, helping to maintain this price stability despite minor fluctuations in energy and freight costs throughout the quarter. The overall market sentiment in Europe reflected cautious purchasing behaviour, with buyers aligning orders closely with demand forecasts to avoid excess stock. Germany, known for typically significant price shifts, witnessed a more tempered pricing environment this quarter. The minimal price changes reflect a balanced market, where both supply and demand levels aligned, contributing to the overall steady trend in Methylene Dichloride pricing. Seasonal demand patterns had limited impact on the pricing, further underscoring the stable nature of the market during this period. By the end of Q3, Methylene Dichloride prices stood at USD 698/MT FOB Hamburg. This closing price underscores the consistency seen across the quarter, marking a period of minimal volatility in the European market. The consistent pricing environment highlights the resilience of the Methylene Dichloride market in Europe amid stable supply and demand dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, the Methylene Dichloride (MDC) market for the North American region has faced significant downward pressure, resulting in a marked decrease in prices. This quarter has been characterized by several key factors that have influenced market prices. The oversupply of MDC, augmented by increased production rates from major manufacturing plants, has played a critical role in depressing prices. Ample supplies have been met with tepid demand, particularly from the downstream solvent sector, including paint and coatings. Export supply at non-competitive levels has further compounded the issue, limiting any upward price momentum.
Focusing on the USA, which has experienced the most substantial price changes, the overall trend has been decidedly negative. The seasonal recovery in demand, typically expected during this quarter, has been insufficient to offset the high inventory levels and sluggish market purchases. In comparison to the same quarter last year, MDC prices in the USA have plummeted by 38%. Furthermore, the price drop from the previous quarter in 2024 stands at 17%, underscoring the persistent bearish sentiment. The first and second halves of the quarter saw a 15% decline, reflecting a consistent downward trajectory.
Concluding the quarter, the price of Methylene Dichloride stabilized revealing a predominantly negative pricing environment. The cumulative effect of high supply, weak demand, and a sluggish trading atmosphere has exerted consistent downward pressure on MDC prices in the USA, signalling a challenging market landscape throughout Q2 2024.
APAC
In Q2 2024, the Methylene Dichloride (MDC) market in the Asia-Pacific (APAC) region exhibited notable stability in pricing, largely underpinned by a balanced interplay of supply and demand dynamics. This quarter was characterized by consistent market conditions, with prices holding steady due to several influencing factors. Primarily, the stability in feedstock Methanol prices played a crucial role, providing a predictable cost base for MDC production. Additionally, limited trading activity and cautious purchasing strategies, mainly driven by oversupplies and moderate demand from downstream industries, further anchored prices. The solvent market, a key consumer of MDC, displayed subdued purchasing patterns, reinforcing the market's steadiness. Focusing on China, the region experienced the most significant price fluctuations. Despite the overall stable sentiment, China's MDC market was impacted by seasonal factors such as high temperatures, boosting demand for refrigerants like R22. However, this did not translate into substantial price volatility. Compared to the same quarter last year, there was a -11% decrease in MDC prices, indicating a long-term downtrend. Yet, from the previous quarter in 2024, prices rose by 4%, reflecting short-term adjustments driven by temporary supply constraints and operational upticks in domestic plants. The first and second halves of the quarter showed no difference in pricing, underscoring the uniform market conditions. This quarter's pricing environment has predominantly been stable, with only minor fluctuations attributable to predictable seasonal and supply-side factors, maintaining the overall equilibrium in the market.
Europe
In Q2 2024, the European Methylene Dichloride (MDC) market exhibited a discernible upward pricing trend. This quarter saw significant factors influencing MDC prices, including heightened demand from downstream solvent industries, robust trading activities, and a tight supply environment. The market dynamics were shaped by the increasing cost of feedstock methanol, which provided marginal cost support for MDC production. Additionally, the market's adaptability to seasonal upticks in coolant demand, driven by rising temperatures, further bolstered prices. Focusing exclusively on Germany, which experienced the most notable price changes, the MDC market demonstrated an overall positive trend. Germany's market saw a 2% increase from the previous quarter, reflecting strong purchasing levels and elevated feedstock costs. However, compared to the same quarter last year, prices reflected a modest decline of 3%, indicating a nuanced pricing environment. The first half of the quarter saw a 1% price increase over the second half, underscoring the influence of seasonality and sustained demand. The correlation between these factors highlights a complex pricing landscape, where increasing demand and tight supply drive prices amidst a backdrop of fluctuating feedstock costs. Concluding the quarter, the price of Methylene Dichloride reflected a resilient market capable of adapting to changing economic landscapes and seasonal factors. Overall, the pricing environment for MDC in Germany during Q2 2024 has been predominantly positive, with key drivers including strong market fundamentals and adaptive trading strategies ensuring a stable yet upward trend in prices.
