According to the Business Society Spot News, in the second half of April, the domestic dichloromethane market showed a cliff like decline, with a narrow range of low prices. As of April 29th, the mixed price of dichloromethane in Shandong region was 2035 yuan/ton, a decrease of 17.19% from the beginning of the month.
fundamental analysis
Cost side: Increased cost inversion, pressure on dichloromethane
The situation in the Middle East has not eased, and imported goods are tight. The methanol market has stabilized and rebounded after a mild decline, making it difficult for prices to fall sharply. Liquid chlorine remains volatile at a high level, and companies have a strong willingness to raise prices. Although raw material prices have fallen, overall prices have remained strong. However, the price of dichloromethane has plummeted, directly leading to a significant increase in cost inversion for companies. The main reason is the passive price reduction and destocking caused by the imbalance between supply and demand (high production+high inventory+weak demand).
On the demand side: weak domestic demand, hindered exports, and high prices suppressing transactions
Weak domestic demand: The demand for refrigerants and pharmaceutical intermediates remains stable, but there is a shortage of orders for small and medium-sized downstream products such as sponges, coatings, and adhesives. Purchasing at high prices is cautious, with a focus on on-demand procurement.
Export obstruction: The prosperity of the export market has fallen from a high level. In March 2026, the export volume of dichloromethane was 15705.94 tons, an increase of 19% compared to the previous month and a decrease of 32% compared to the previous year. The continued impact of Middle East shipping issues on export orders, coupled with high prices, weakened export diversion capabilities, and further exacerbated the imbalance between supply and demand in the domestic market. The shipping problem is difficult to solve in the short term, and there is no significant increase in exports.
Supply side: high production and inventory accumulation, high shipping pressure
Operating rate: The industry maintains a high level of around 80%, with the release of new production capacity in Jinhai, Henan, and continued loose supply. Inventory: The effect of price reduction and destocking in the first half of the month was limited, but in the second half of the year, the inventory of enterprises rebounded to a medium high level, and the pressure of shipment forced price reduction and promotion. Under losses, it is difficult for enterprises to significantly reduce production. In early May, inventory remained high, and traders’ willingness to ship increased, suppressing upward potential.
Market forecast:
Dichloromethane is fluctuating at a low level in the short term, with limited rebound and support for decline. The weak balance pattern is characterized by strong cost support, weak demand constraints, and high supply pressure, resulting in a situation where prices remain stagnant and prices are difficult to fall deeply.
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