News and Articles

• Dichloromethane recovered after an early June price drop
• Shandong bulk prices moved from 2,025 to 2,080 yuan per tonne
• Methanol and liquid chlorine costs affected producer pricing
• Plant rate cuts gave limited supply-side support
• Demand stayed uneven across solvents, pharma and refrigerants

China’s dichloromethane market recovered in mid-June after prices fell sharply at the start of the month, creating a short-term cost review for buyers in solvents, refrigerants, pharmaceuticals and metal cleaning.

The Shandong bulk market dropped to 2,025 yuan per tonne on June 2 before recovering to 2,080 yuan per tonne by June 15. The rebound was modest, but it showed that sellers were able to regain some pricing ground after the early-month slide. For buyers, the move signals a market that is not strongly rising, but also not weak enough for easy discounting.

Feedstock cost movement shaped the recovery. Methanol prices gave producers some cost support, while liquid chlorine moved sharply during the first half of June. That combination made production economics less predictable. When input costs swing quickly, sellers may resist deep cuts even when downstream demand is not strong.

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Supply conditions were mixed. Industry operating rates remained around 75 percent to 80 percent, which kept total availability adequate. Some producers reduced operating rates, and maintenance at selected plants was expected in mid-to-late June. These supply-side changes offered sellers a limited floor, but they did not create a broad shortage.

Demand stayed uneven. Refrigerant-linked consumption performed better than traditional outlets, while solvents, metal cleaning and pharmaceutical demand remained slower. Export buying from Southeast Asia and South America also eased after earlier activity, reducing the support that overseas orders had given the market.

Procurement teams should treat the rebound as a signal for disciplined buying. Buyers with immediate production needs may cover short-term volumes before maintenance affects local availability. Large forward purchases look harder to justify unless feedstock costs move higher or plant outages expand.

The best approach is to keep purchase cycles short, compare Shandong offers with other supply points and monitor methanol and chlorine. Buyers should also confirm packaging availability and transport timing, since small price changes can be offset by freight or drum cost movement.