Methylene chloride

The global methylene chloride market will continue to see tightness and stable demand as capacity remains below demand levels, but facility expansions remain uneconomic.

The capacity rationale of the mid- to late-2000s is unlikely to be reversed, as concerns about the chemical’s toxicity and possible carcinogenic effects are pushing the market towards alternatives.

Most of the demand for methylene chloride will come from the refrigerant liquid production market. Methylene chloride is expected to remain a preferred feedstock for several major residential and industrial refrigerants.

With warmer weather expected for the spring and summer, refrigeration and air-conditioning sales have been strong.

On the solvent side, demand is expected to be stable to slightly softer, as more environmentally friendly alternatives to methylene chloride are tested and found, particularly in metal degreasing and paint-stripping applications.

In the short term, as long as production remains feasible and supply is constrained, prices for methylene chloride will remain at record or near-record highs globally.

Updated to mid-November 2012