China's dichloromethane market has been highly volatile, with prices swinging from a nine-year low of 1695 yuan/ton in September to 2652 yuan/ton by mid-April. The primary driver is supply-side management: major producers like Luxi and Jinling have cut operating rates to 50-80%, while others run at full capacity, creating an uneven supply landscape. Feedstock costs play a secondary role, with methanol prices fluctuating between 2253 and 2535 yuan/ton, offering inconsistent cost support. Demand remains bifurcated—refrigerant R32 production provides steady offtake during peak season, but pharmaceutical and solvent sectors only procure on a need-basis. Export growth has helped absorb some surplus, but domestic inventory pressure persists whenever operating rates climb above 80%. The market's direction hinges on whether producers maintain disciplined output cuts or revert to high utilization, which would likely trigger another price correction.
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