The Weak Supply‑Demand Situation Persists, and the Dichloromethane Market Continues to Weaken and Decline

Overall Weak Market Performance of Dichloromethane

China’s domestic dichloromethane (methylene chloride) market keeps sliding into a downtrend. There are no substantial positive drivers to prop up prices, while downstream demand lacks follow‑up momentum. Market transactions are limited to urgent spot restocking, and participants widely hold a wait‑and‑see attitude.

Supply conditions remain loose across the industry. The overall operating rate hovers near 80%, bringing sufficient market supply. Inventories keep piling up for many manufacturers, creating notable inventory pressure. Downstream end‑user industries suffer poor consumption, and reduced operating loads limit actual raw‑material absorption, forming heavy downward pressure on dichloromethane. Bearish sentiment prevails among traders and downstream buyers, who stick to on‑demand procurement without large‑scale stock‑building. Faced with rising stock levels and sluggish deals, manufacturers prioritize shipments and cut offers continuously, pushing transaction prices lower, while regional price gaps have shrunk amid feeble demand.

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Supply‑Side Dynamics: Mixed Plant Operations and Mounting Inventory Pressure

Methane chlorination output reached 70,000 tons for the surveyed week, dropping 1.13% week‑on‑week; capacity utilization stood at 78.16%, down 0.87 percentage points compared with the prior period.

Although Dongyue and Huatai plants have returned to full‑load production, multiple facilities face cuts or shutdowns: Jinling Dawang’s 240,000‑ton unit and Lujiexinghua’s plant run at reduced loads; one 40,000‑ton unit of Jiangxi Liven is shut down, and Yichang Yonghe remains offline. Total lost production outweighs restored output, pulling down overall output and operating rates.

Co‑product chloroform faces heavy sales pressure, prompting some producers to adjust the output ratio between dichloromethane and chloroform, lifting dichloromethane output. Coupled with slow product shipments, most manufacturers see inventory accumulation. Enterprise inventory levels have become the core factor dominating current market movements.

Downstream Demand Remains Sluggish with Divergent End‑use Sectors

Downstream demand stays generally weak with limited improvement signals, and different consuming sectors show obvious divergence. Small‑scale downstream solvent and cleaning‑agent manufacturers only conduct urgent spot replenishment, with on‑demand purchasing as the mainstream operation.

Demand from the core downstream refrigerant R32 sector is lackluster, with its comprehensive operating rate falling to roughly 50%. In August 2026, household air‑conditioner output hit 10.73 million units, down 6.23% year‑on‑year and 23.08% month‑on‑month. Domestic sales reached 5.87 million units, slipping 12.84% year‑on‑year and 33.14% month‑on‑month. Export volume stood at 4.86 million units, rising 3.23% year‑on‑year yet dropping 6.00% month‑on‑month. Refrigerant producers adopt volume‑control‑and‑price‑support strategies, further curbing their purchasing appetite for dichloromethane.

Short‑Term Market Outlook

At present, the dichloromethane market is trapped in dual weakness of supply and demand, and market participants maintain cautious sentiment. Looking ahead, production is likely to increase, and inventory pressure will linger for some manufacturers. Downstream operating rates can only achieve marginal improvement; buyers stick to urgent‑order purchases and are reluctant for bulk restocking, making it hard to expand transaction volumes. The export market shows no tangible recovery and cannot offset domestic inventory build‑up.

The dichloromethane market is expected to keep weak volatile movement, and prices may still have room to fall. Nevertheless, growing losses among methane chlorination producers mean cost factors will act as an important floor, restraining excessive price declines.

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