Methylene Chloride / Dichloride / MDC

Methylene chloride is used as a solvent in a lot of industries. Common applications include paint removal, degreasing, and as a solvent in adhesives, pharmaceuticals, metal cleaning, aerosols, coatings etc.

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North America

During this quarter, the price of Methylene Dichloride remained on the upper end compared to the previous quarter in the USA. Due to Russian invasion of Ukraine, manufacturing and constraints supply had suspended, which increased the cost of Methylene Dichloride in the American market. In late April, the USA market encountered a stock deficiency of feedstock Methanol because of different production rate diminishes. Because of low material accessibility, producers had to revise their offers. Besides, the request from downstream paint and coating enterprises stayed robust in the homegrown market, adding to cost increments. In June, the price of Methylene Dichloride in the US was USD 885/ton FOB Louisiana.

Asia Pacific

Methylene Dichloride prices gained momentum compared with the previous quarter due to improved purchasing rates and tepid market sentiments. In Q2 2022, the prices are still on the lower end with the utilization of existing inventories and stably operating manufacturing units. In June, the cost of Methylene Dichloride in India was USD 760/ton Ex- Depot Delhi NCR. Prices remained under pressure from oversupplies, as booming new MDC capacities in India affected the exports of China. MDC prices slumped with weak demand from downstream paint and coating industries. With two months of lockdown in major cities of China, domestic consumption of MDC reduced, resulting in a greater extent of exporting cargoes to overseas markets.

Europe

European Methylene Dichloride market stayed on the higher side with an increment in demand each month in Q2 2022 compared to previous quarters. Demand remained robust; however, the supply was insufficient, influencing the market fundamentals. Major MDC producers had introduced a surcharge on their products despite spiraling gas and power cost. Feedstock Methanol and Chlorine confronted the level of snugness makers who had shifted from negotiation on cost and expanded the price because of limited availability and higher production cost. Downstream paint and coating industries had additionally grown, and the market balance stayed firm, despite the ascent in adequate capacities this quarter. In June, the cost of Methylene Dichloride in Germany was USD 995/ton FOB Hamburg.

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