The prices of Chloroform witnessed a downward trend in the last week of January 2025. The prices declined notably by 2.5% as compared to the previous week. The decline in the prices was attributed to bearish sentiment in the upstream Methanol market. Methanol prices declined in the market reflecting declined production cost for Chloroform in the market. However, the supply in the market remained sufficient which put downward pressure on the prices and led to declined Chloroform prices in the European market.

In the upcoming weeks, Chloroform prices are expected to fluctuate due to volatility in demand and supply. The bearish Methanol market may continue exerting downward pressure on prices, leading to potential declines. However, supply is expected to remain consistent with steady production levels. Demand, influenced by factors like regulatory changes and economic uncertainties, is likely to fluctuate, causing potential price volatility. If demand rises, prices may increase, while subdued demand could lead to further declines. Overall, Chloroform prices are set to experience unstable pricing trends in the near future.

In the current market, the pharmaceutical sector, a key downstream consumer of Chloroform, experienced subdued demand due to recent regulatory changes in drug pricing policies, particularly in Germany and other European nations. These policy changes have led to increased uncertainty and price control measures, which in turn have reduced procurement activities from pharmaceutical companies. Additionally, export demand weakened as confidence among manufacturers regarding future export demand declined which suggests potential challenges in global trade, leading to subdued international demand for German goods further exacerbated by the potential tariff threats from new Trump administration. With both export demand weakening and domestic demand facing challenges, these factors have collectively put downward pressure on Chloroform prices, reflecting the broader softening market sentiment.

On the supply side, the upstream Methanol market continued to remain bearish, which further exacerbated the market conditions and contributed to the downward pressure on Chloroform prices. The decline in Methanol prices reflected lower production costs for Chloroform manufacturers, but this also led to an oversupply of Chloroform in the market, as manufacturers found little incentive to reduce output. Despite the stable production levels of Chloroform, low demand from both international and domestic markets resulted in market saturation, pushing prices downward. The combination of weak demand dynamics, coupled with the declining feedstock cost, intensified the bearish market sentiment, leading to an overall downward trajectory in prices. Consequently, the market remained in a downturn, with expectations of a continued lack of significant recovery in the short term due to persistent supply-demand imbalances.