Methylene Dichloride Prices Overview

Market Overview

Quarterly Update on Global Methylene Dichloride Market
 
For the Quarter Ending December 2020
 
Asia
 
Methylene Dichloride demand in Southeast Asia continued to strengthen following increased number of enquiries from buyers. In China too, demand for the product was heard paving its way back but it remained far below the pre-pandemic levels. Although demand in India remained stale but the prices witnessed a steep hike in the second half of the quarter, buoyed by its delayed imports due to congestion along several routes. Consequently, Methylene Dichloride prices in India were averaged at around USD 539 per MT in the quarter ending December 2020. Supply remained sufficient despite few turnarounds heard in China as manufacturers refrained from mounting up inventories to abate any hurt to their margins. In Northeast Asia, plant operating rates remained same throughout the quarter following no major change observed in the product demand and supply fundamentals.   
 
North America
 
Since a significant amount of Methylene Dichloride is imported from Europe, several maintenance turnarounds and unprecedented increase in the freight charges limited the supply of Methylene Dichloride in the North American market and led to a steep increase in its prices during the quarter. Demand also witnessed prominent recovery from solvent and pharmaceutical applications but still remained way below pre pandemic levels. Container shortage exacerbated the supply crises in the region and consequently laid a direct influence on its prices. However, traders remained optimistic that the supply imbalance would surely reduce by the end of February.
 
Europe
 

Supply of Methylene Dichloride in the European market remained tight in Q4 following appreciable recovery in demand against several production issues in the first half of the quarter ending December. Increase in freight rates and high feedstock cost considerably affected the supply from its major exporter-China. Olin Corporation announced a maintenance turnaround at its Europe plant in December which further tightened the domestic supply for few months. Demand for Methylene Dichloride witnessed a substantial recovery in the second half of 2020 backed by its increased consumption from the pharmaceutical industry. 

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Methodology

ChemAnalyst gathers information through primary research surveys conducted with various Methylene Dichloride manufacturers, spread across the domestic and international market, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
 
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global Methylene Dichloride market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
 
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
 
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global Methylene Dichloride market.
 
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on weekly, monthly and yearly basis.
 
Finally, region-specific markets for Methylene Dichloride are analyzed and region-wise demand pattern is tracked.

About

Methylene Dichloride is also known as dichloromethane or chlorinated carbon is a colorless and slightly sweet, scented solvent which is widely utilized as an industrial solvent and also as a strong paint thinner and paint stripper. The product is not miscible with water, but it is polar in nature and miscible with several other organic solvents. The compound is produced via chlorination of Methane where several other derivatives could be formed in the method. In the process, cyclohexane, propylene and 2-methyl-2-betene are used as stabilizers. The purity of various products formed is largely based on the extent of chlorination and content of hydrocarbons in the reaction. Methylene Dichloride is conventionally retrieved from extraction process. The compound exists in stable form when dry but possesses high affinity to water thus hydrolyses under its presence.