Asia
In Asia, chloromethane prices weakened through the third quarter of 2025. The market in China faced a persistent imbalance between supply and demand. During July, several plants in Shandong reduced output due to equipment issues, which temporarily tightened supply and supported a short-lived price increase. However, as units resumed operations later in the month, the industry’s operating rate rose again, and inventories built up.
Demand from downstream users, including refrigerants, coatings, and adhesives, remained soft due to hot weather, maintenance shutdowns, and environmental checks. By August and September, producers ran at high loads while buyers purchased only what they needed, keeping overall trade quiet. Despite hopes for a seasonal recovery in September, consumption did not pick up, leading to further price pressure and a continued market slump by quarter end.
Europe
In Europe, chloromethane prices also moved lower over the said period. Demand stayed weak, particularly from downstream chemical and refrigeration sectors affected by sluggish industrial activity and high energy costs. Producers struggled with expensive gas and electricity, which limited their competitiveness against imports.
The European market saw additional strain when Ineos Inovyn decided to suspend its chloromethane unit in Tavaux, France, due to poor demand and rising costs. The shutdown reflected how difficult it had become to balance operations in a market where consumption continued to decline and margins were under heavy pressure.
North America
In North America, chloromethane prices were relatively steady early in the quarter but softened later as demand from construction, pharmaceuticals, and refrigeration slowed. While supply was generally sufficient, a lack of strong buying interest limited any upside momentum.
Producers maintained moderate operating rates to manage inventories, but weak exports and muted domestic consumption kept sentiment cautious. Cost support from raw materials was limited, adding to the overall stability but preventing any recovery.
Analyst Insight
According to Procurement Resource, the Chloromethane market is expected to remain weak in the short term, with only slight improvement possible if production cuts expand or downstream demand shows recovery by late Q4’25.
