US Chloroform Market Maintains a Balance, Potential Trade Disruption Raise Concerns
- 07-Mar-2025 7:00 PM
- Journalist: Timothy Greene
According to ChemAnalyst, the Chloroform market showed signs of balance and equilibrium in the last week of February 2025. The prices remained stable as compared to the previous week with a slight bearish outlook. The stability in the prices was primarily driven by balanced demand from significant downstream sectors while supply remained sufficient to meet the said demand. The major downstream sectors namely agrochemical and pharmaceutical sector witnessed flat market activity indicating steady demand and therefore steady consumption of Chloroform. The overall market sentiments were flat which led to the stable pricing dynamics in the week.
Moving further, the prices of Chloroform are expected to remain rangebound shortly owing to stable market conditions and sufficient availability in the market. Prices may fluctuate due to the ongoing trade disruptions and the new tariffs imposed by President Donald Trump, which may push the feedstock methanol costs in the market and, therefore, may put upward pressure on the prices. Additionally, increased energy cost may also lead to a surge in production cost, leading to a slight bullish price trend.
On the supply side, the feedstock Methanol prices continued to decline despite below average methanol loadings from Trinidad and Tobago in the first two months of 2025, spot prices continued to decline suggesting sufficient supply of feedstock Methanol in the market, preventing any supply crunch which could pressurize the prices of Chloroform. The production of Chloroform continued to be steady which supported the overall, stable price dynamics. Declining feedstock costs were offset by increased energy costs as Natural gas prices surged leading to balanced market conditions and stable prices of Chloroform in the last week of February 2025.
As of February 28th, 2025, the demand for Chloroform in major downstream sectors such as pharmaceutical and agrochemical sectors continued to be subdued reflecting slightly declined market activity. As the pharmaceutical sector is a key consumer of Chloroform, the upcoming imposition of tariffs on pharmaceutical imports from April 2nd, 2025, could further disrupt demand by increasing production costs for Indian generic drug suppliers, who play a crucial role in the US market. While the overall impact of tariffs remains uncertain and may take time to materialize, the current market dynamics indicated bearish market sentiments with lower procurement activities and ample supply contributing to stable prices. However, despite sluggish demand, the rise in energy costs offset the impact of sluggish demand, leading to relatively stable chloroform pricing in the market.