In Q1 2024, the global Methylene Dichloride market saw a mixed trend, with prices in China (East Asia) reported at $372.47/MT. This marked a sharp decrease of -20.75% compared to the previous quarter. The drop in prices was largely due to abundant supply and lower-than-expected demand, particularly from the pharmaceutical and foam manufacturing sectors. Additionally, easing feedstock costs and factory closures during the Chinese New Year contributed to the reduced prices in early 2024.
In Q2 2024, Methylene Dichloride prices in China continued to decline, with prices reported at $306.66/MT, showing a further sharp drop of -17.67% from Q1. This negative trend was driven by continued weak demand in both the domestic and export markets. The slowdown in the chemical industry, along with challenges in the construction and automotive sectors, particularly in Europe, also contributed to this price decline. Rising freight costs and supply chain disruptions further added to the downward pressure on prices, especially in Asia.
By August 2024 (Q3), the Methylene Dichloride market experienced a price rebound, with prices in China reported at $358/MT, showing an 11.88% increase from July, when prices were at $320/MT. This price increase was fueled by a tightening of supply due to production cuts in key regions like Europe and ongoing freight disruptions. Additionally, the recovery of demand in the pharmaceutical and foam industries, particularly Europe, played a significant role in pushing prices upward during this period.
Looking ahead to Q4 2024, the Methylene Dichloride market is expected to face further upward pressure as demand from sectors such as solvents, pharmaceuticals, and adhesives increases. The upcoming festive season is likely to boost demand for packaging materials, adding to the strain on supply. Additionally, any further disruptions in global shipping or production facilities could worsen the supply-demand imbalance, pushing prices higher in the final quarter of 2024.