Price trend:

According to data from the SunSirs' commodity market analysis system, as of November 20th, the average price of dichloromethane in bulk shipments in Shandong Province was 1,717 RMB/ton, a decrease of 10.08% during the period. Compared with the same period last year, the price plummeted by 44.64%. The brief upward trend in the first half of the month failed to continue, and the market returned to a downward trend under the dual negative factors of rising supply pressure and collapsing cost support.

Market Analysis

Supply side: Increased supply was the main reason for price decline

The concentrated resumption of operations at previously shut-down or reduced-capacity plants was the core factor driving downward pressure on prices during this cycle. The overall operating rate of the domestic methane chloride industry had rebounded to nearly 80%, significantly increasing market supply. This led to a continuous accumulation of inventory pressure for companies. To secure limited orders and alleviate inventory pressure, manufacturers had adopted price reduction and promotional strategies, intensifying market price competition and driving prices lower.

On the demand side: Weak domestic demand was the fundamental constraint, and efforts to stabilize exports wre insufficient to reverse the downward trend

On the domestic demand side: Downstream industries such as refrigerants, pharmaceuticals, and pesticides performed poorly, with purchases mainly consisting of small, immediate orders and a lack of intention to stockpile on a large scale. A strong "buy high, sell low" mentality prevailed in the market, further suppressing trading activity.

On the external demand side: In October 2025, China's dichloromethane exports totaled 18,850.28 tons, a slight increase of 0.11% month-on-month, remaining generally stable. Imports were only 20.54 tons, a decrease of 63.67% month-on-month. Although the export market performed steadily, its scale was limited compared to the huge domestic supply, making it difficult to absorb the surge in domestic production and unable to reverse the negative impact of weak domestic demand.

On the cost side: the collapse of support levels exacerbated bearish sentiment in the market

Methanol: As a key raw material, methanol port inventories were high, putting continued pressure on supply. This, coupled with futures prices hitting new lows, had severely dampened market confidence. As of November 20th, the benchmark price for methanol on the SunSirs website was 1,999 RMB/ton, a decrease of 3.29% during the period. The continued decline in raw material costs had weakened the price floor for dichloromethane, significantly reducing its cost support.

Liquid chlorine: The Shandong liquid chlorine market recently saw prices rise initially and then fall, with downstream purchasing activity remaining low, putting pressure on chlor-alkali companies to sell their products. The frequent price fluctuations and overall weakness of liquid chlorine had made it difficult to effectively pass on the cost of dichloromethane.

Market Outlook: The loose supply and demand situation is unlikely to change, and the market is expected to remain weak and volatile in the short term

In summary, the dichloromethane market was dominated by negative factors. On the supply side, high operating rates indicate ample supply; on the demand side, weak domestic demand is unlikely to improve significantly in the short term; and on the cost side, the downward trend in methanol, the main raw material, is likely to continue, failing to provide effective support. It is expected that the dichloromethane market will likely maintain a weak and volatile pattern until the end of November.

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