Introduction: In June 2026, China's monthly export volume of dichloromethane was 8,400 metric tons, a decrease of 37.61% from the previous month. In the first half of 2026, China exported a total of 96,700 metric tons of dichloromethane, down 8.10% compared to the same period last year.
The main reason for the decline in June export volume continued to be weak external demand, compounded by factors such as order cycles, regional competition, and maritime transportation. Southeast Asia and other regions have entered the traditional off-season for the chemical industry, with downstream sectors such as coatings, polyurethane foam, and pharmaceuticals experiencing continuous declines in operating rates. End-user demand in core destination countries like Vietnam, Indonesia, and Brazil has not yet recovered, lacking momentum for large-scale replenishment. Overseas concentrated stockpiling in the first quarter was followed by a noticeable contraction in procurement by May. By June, overseas traders' inventories remained relatively high, leading to a purchasing pattern of just-in-time and small-lot sporadic orders, with limited large orders. Meanwhile, risks persist on the Red Sea route, with some shipping routes maintaining high surcharges.
In terms of trading partners, China exported methyl chloride products to as many as 56 countries in June. The top five export destinations were Vietnam, Mexico, Indonesia, Nigeria, and Brazil, accounting for 50% of total exports in June. High-risk control measures in the [Hormuz] Strait have driven up maritime shipping costs on Middle Eastern routes and extended shipping times, suppressing orders for Chinese chemicals and energy products to the Middle East. Additionally, the market has entered the traditional off-season for external demand, lacking momentum for large-scale replenishment.
By enterprise registration location, Shandong, Zhejiang, and Guangxi remained the main registration areas, followed by Liaoning, Sichuan, etc., with the top five regions accounting for 89% of exports. Domestically, 85% of methyl chloride production capacity is concentrated in major export regions. Local producers and traders leverage scale advantages, cost control capabilities, and mature export channels to continuously strengthen export competitiveness.
In July, cost-side methanol and liquid chlorine prices both surged significantly, strengthening the bottom-line support for production costs. Methyl chloride manufacturers once again experienced losses. Driven by domestic price increases for dichloromethane, export FOB prices fluctuated upward, diminishing export price competitiveness. On the supply side, producer operating rates have remained generally stable. Although there have been some maintenance shutdowns or reduced loads, the overall domestic supply remains ample. On the logistics front, geopolitical risks in the Strait of Hormuz have escalated again, causing disruptions to shipping schedules on Middle Eastern routes and pushing up freight premiums, thereby suppressing order transactions in the Middle East region. However, positive factors still exist. The off-season in Southeast Asia is nearing its end, and some traders have started pre-stocking ahead of schedule. Steady release of essential orders from India and Southeast Asia is underway. Overall, it is expected that the export volume of dichloromethane in July may see a slight recovery compared to June. However, large-scale overseas replenishment has not yet commenced, and coupled with weakening price competitiveness and disruptions in long-haul logistics, a significant surge in exports is unlikely.
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