Increasing Supplies and Low Demand are Pushing Back Methylene Dichloride Prices Across the Globe

Texas, USA- The market trading fundamentals of Global Methylene Dichloride remain lackluster, weighed down by weaker-than-expected demand and recently limited overseas purchasing activities. In terms of feedstock, Methanol prices are also suppressed in the global market under the influence of weak spot trading dynamics.

As market trading activity in the United States depreciates, export trading from the region to the global market has become even more challenging. Feedstock Methanol prices have also fallen, contributing to the losses in price trends. Regional demand remains sluggish as a result of the slow economic growth in the region. There was an increase in inventory among the enterprises, which prevented prices from rising further. With the week ending on 14th April, the price of Methylene Dichloride in the USA declined to USD 874/ton FOB Louisiana with a weekly decline of 0.56%.

In the Asian market, Methylene Dichloride prices remain bearish, along with high product availability among enterprises. While concerns about subdued global demand continue to hang over the Asian market, there has been relatively limited demand for Methylene Dichloride. A combination of surplus inventory and low demand fundamentals led most Methylene Dichloride producers to cut production. This week, the Methylene Dichloride price in China declined to USD 408/ton FOB Qingdao. The feeble spot purchasing due to Ramadhan in Southeast Asia results in waning demand with limited exports from South Korea to the Asian market.

ChemAnalyst predicts that Methylene Dichloride will follow a bearish trend in the global market with a low purchase appetite. In terms of the feedstock, Methanol prices are expected to fall based on changes in Natural Gas prices. A mediocre downstream order flow is expected to reduce the average operating rate in the downstream solvent market. It is also possible that enterprises will reduce production and adjust their offers to suppliers if demand continues to weaken.