The Methylene Chloride report is published weekly in Asia and Europe by ICIS’ locally-based reporters. The trusted price assessments cover spot markets in both regions. Unbiased and informative market commentary includes intelligence on regional movements, upstream impacts and any relevant production issues at the time of publication as well as a wider overview.
If you are involved in this market these reports can help you to make informed commercial decisions.
Updated to Q4 2018
Besides a turnaround in October, market participants are expecting recovering supply after unexpected shutdowns this quarter. However, market players were wary of unexpected shutdowns happening next quarter which would boost prices. The Asia market typically sees some import volumes of U.S. or Europe origin in the last quarter but this would depend if the arbitrage window is open.
Market players did not anticipate significant changes in the last quarter of the year, except for seasonal factors causing softer demand. This includes holidays, like the Diwali Festival in India in November, Golden Week Holiday in China in the first week of October, and various year-end holidays in the Asia region.
Supply in the European methylene chloride market is expected to remain stable or increase in the fourth quarter compared to the third. There was a long-running supply limitation for related products at AkzoNobel in late Q2 and Q3, which is expected to eventually be resolved, although it is unclear when this may take place. The outlook for supply is thus somewhat unclear.
Demand in the European methylene chloride market is expected to remain roughly stable compared to the previous quarter. There is a somewhat more pessimistic overall European economic outlook compared to 2017 according to PMI data. On the other hand, export demand was high late in the third quarter, which may counterbalance this effect.
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Methylene Chloride Methodology
Methylene chloride, also known as dichloromethane or methylene dichloride, is a chlorinated hydrocarbon.
Methylene chloride, also known as dichloromethane, is a chlorinated hydrocarbon produced by the chlorination of chloromethane. Further chlorination of the mixture of chlorinated methanes results in chloroform and carbon tetrachloride being produced.
Methylene chloride’s ability to dissolve a wide range of organic compounds makes it a useful solvent for many chemical processes. It is also used as a paint stripper and metal cleaning and finishing. Other applications include aerosol propellants, foam blowing, extraction medium in food processes, pharmaceuticals and cosmetics.
While methylene dichloride is the least toxic of the simple chlorohydrocarbons, it has health risks due to its volatility. It is also considered to be a potential occupational carcinogen. As a result, alternatives have been sought in many applications.
LONDON (ICIS)--Markets Reporter Morgan Condon interviews Eashani Chavda, Editor of the European methylene chloride report, on recent tightness in the...Read
LONDON (ICIS)--AkzoNobel’s chloromethanes capacity expansion in Frankfurt, Germany, responds to the firm’s convincement that end user demand for that...Read
LONDON (ICIS)--European methylene chloride spot sentiment remains steady this week, underpinned by generally healthy domestic demand and sufficient...Read
LONDON (ICIS)--The European methylene chloride market was tight this week, according to market feedback, with limited supply in some parts of the...Read