During the week ending 29th August 2025, Methylene Dichloride (MDC) markets in China and the USA moved in opposite directions. Chinese prices decreased by 5.3% due to oversupply, weakened cost support, and weak demand, while the US Market continued its bullish trend, increasing by 7.4% supported by firm downstream pull, cost-side pressure from methanol, and tight inventories.
Key Takeaways
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Prices for MDC dropped in China amid an oversupply and poor feedstock support, while prices increased sharply in the USA due to an increase in the cost structure and tighter inventories.
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The supply dynamics diverged, with China posting record-high operating rates, whereas the USA experienced a tight inventory.聽
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Methanol placed bearish cost pressure in China but provided bullish support in the USA, which drove regional differences.聽
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Demand for MDC remained weak in China, while in the USA, pricing was buoyed by steady pull from aerospace and appliances.
Supply Situation
China&#**;s supply side remained heavy, operating rates climbed well above *** - the highest in six months. This increase in production significantly outpaced consumption downstream and led to higher inventories. Thus, many MDC producers began aggressive discounting, with some offering as low as RMB *,***/ton, to relieve inventory pressure.
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