Chloromethane Price Trend and Forecast

Chloromethane Regional Price Overview

Get the latest insights on price movement and trend analysis of Chloromethane in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Chloromethane Price Trend for the Second Half of 2023

During H2 of 2023, in Aisa, the chloromethane prices initially remained robust due to limited supply but later faced challenges from poor raw material costs and supply-demand pressures, prompting manufacturers to reduce prices. Further, the momentum of the market benefitted from the maintenance shutdowns in the first half of the quarter, which impacted production.
 

Chloromethane Price Chart

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During this phase, the consistency in the procurement rates from refrigeration industries also supported the market conditions, but the dynamics overturned in the later months. The slowdown in industrial activities due to the winter holiday season elevated the inventories and reduced the quoted prices of chloromethane.

In Europe, chemical synthesis giants cut their workforce amid a market recession, leading to revenue losses and reduced chloromethane prices due to soaring energy costs and restricted raw material supply from Russia. North America also saw chloromethane prices decline in Q4 2023 after peaking in Q3, with minimal consumer inquiry and increased inventories. Turmoil in natural gas and crude oil prices lowered production costs, leading manufacturers to offer lower prices. Struggles at the Panama Canal port further increased inventory levels, contributing to downward price trends.

Analyst Insight

According to Procurement Resource, the price trend of Chloromethane is expected to struggle in the immediate quarters as the manufacturers and traders struggle to find a way to diversify the trading routes amid the disruption of traditional ones.
 

Chloromethane Price Trend for the First Half of 2023

Chloromethane is primarily produced by methanol and hydrochloric acid, so the prices are dependent on these feedstock materials. Chloromethane was a popular refrigerant but was replaced later because of its high CFC emissions causing global warming, but it is still consumed by various silicones, agrochemicals, chemicals, and pharma industries.

During H1’23, Chloromethane mostly observed fluctuating price trend, with prices wavering at the lower end because of reduced downstream demands. In China, the month of March witnessed a spike as the inventories tumbled, but the decreased offtakes dominated the market otherwise. Similarly, in Europe and the USA, the second quarter witnessed some momentary correction, but overall, Chloromethane prices remained in a slump throughout.

Analyst Insight

According to Procurement Resource, the market projections continue to be disappointing for Chloromethane, with no major improvements in sight in the upcoming months.
 

Chloromethane Price Trend for the Second Half of 2022

Chloromethane had a very oscillating price trend in H2 2022. At the beginning of Q3 Chinese market registered a downhill trend, but as economic activities resumed with the removal of lockdown restrictions, the chloromethane price trend took a short-lived upturn. However, things quickly turned south as demand destruction took over the production quantity and costs. Little to no offtakes in Q4 led to the crashing of prices, which eventually plateaued by the year-end.

Contrary to the Chinese market European market witnessed a surge in chloromethane prices. The upstream situation here remained strangled, with energy constraints and freight disturbances. However, the price patterns underwent occasional fluctuations as the demand dampened and prices of raw materials suffered. But overall, the chloromethane prices in the European markets kept higher than their Asian and US counterpart.

While the American market behaved similarly to the Asian market. Ample supplies and lowered demands kept the market sentiment dull. After a flattened curve for a couple of months, chloromethane prices in the American market fell sharply around the final quarter of the year. Dampened demand remained the major reason for the declining trend in both Asian and American markets.

Analyst Insight

According to Procurement Resource, Chloromethane prices are expected to continue the downward journey, as market demand doesn’t seem to be picking up anytime soon. Existing inventories can support the existing demands, so prices are not expected to rise substantially.
 

Chloromethane Price Trend For the First Half of 2022

The domestic chloromethane market was high for a long time, and domestic prices in 2022 were significantly higher than in the previous decade. However, following a significant increase in domestic supply in May, the market began to show a clear downward trend and entered a continuous low channel.

In May, the average price of Chloromethane (methyl chloride) in Shandong, China, was 4,307 RMB/MT, a decrease of 346RMB/MT, or 7.44%, from the previous month. The price trend for Chloromethane continued the downward trend and averaged 3750 RMB/MT towards the end of said period.

Average chloromethane prices in the final quarter of 2021 was 1140 USD/MT. A considerable share of the chloromethane produced is used to make chemical intermediates such as methyl chlorosilanes. Silicone fluids are manufactured using these methyl chlorosilanes.

Silicone fluids derived from chloromethane are utilised in a variety of products, including antifoaming agents, releasing agents, and light-duty lubricants, as well as speciality chemicals for consumer goods (cosmetics, furniture polishes, auto polishes, and paper coatings). The market for chloromethane has been rising in nations like China, India, Japan, and South Korea, owing to rising demand from various end-user industries.

Procurement Resource provides latest prices of Chloromethane. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.