- Dichloromethane markets remained mixed during Q2’26 as softer feedstock conditions and cautious industrial demand limited sustained upward pressure.
- Chlorine availability and chlor-alkali operating rates influenced production economics, while maintenance-related supply adjustments created temporary regional tightening.
- Weak PVC, construction, and industrial activity restrained downstream consumption and kept buyers cautious with inventory commitments.
Asia
Dichloromethane prices in China were ~USD 330/MT in May and ~USD 302/MT (EXW) in June, indicating a softer movement in the latter half of the quarter. Initially, the prices were high amid the Middle East disruptions. However, as the quarter progressed, the prices started on a downward trajectory. The decline reflected weaker upstream cost support and subdued downstream purchasing as PVC processors operated cautiously amid weak construction and real-estate activity. Regional logistics restrictions and reduced tanker movements from northern production areas tightened availability at points during June, while chlor-alkali maintenance reduced operating rates and provided temporary support. India followed a softer trend, with the average price slipping from ~USD 397/MT in May to ~USD 389/MT (CIF) in June, a ~2% decrease. Cautious industrial procurement and weak construction-linked demand limited the impact of temporary supply constraints.
Europe
In Germany, Dichloromethane prices remained at an average of ~USD 423/MT (CIF) during May and June. European market conditions were stable to soft as adequate upstream availability offset elevated energy and industrial production costs. Higher inventories indicated limited supply pressure, while weaker construction activity reduced consumption. Euro-area building construction declined 5.2% year over year in April, restricting demand from pipes, profiles, and insulation. Infrastructure activity provided partial support but was insufficient to generate stronger downstream buying.
North America
North American Dichloromethane markets remained soft to stable as weaker downstream consumption offset elevated production expenses. Producers faced higher electricity, natural gas, and maintenance costs, but cautious procurement from PVC and industries limited recovery. Resin production improved during the quarter, although commercial and industrial activity remained subdued. Residential construction offered some support, but broader demand conditions kept inventory management cautious and restricted stronger market momentum.
Analyst Insight
According to Procurement Resource, Dichloromethane markets are expected to remain sensitive to feedstock availability, chlor-alkali operating rates, and construction-linked demand, with regional conditions likely to remain mixed.