HS Code:
Dichloromethane, also known as Methylene Chloride (HS Code: 2903.12), is a colorless, volatile liquid with a sweet odor, widely used as a solvent in various industrial applications, including paint stripping, pharmaceutical manufacturing, and metal cleaning. It is also utilized in the production of adhesives, aerosols, and as a degreasing agent. Due to its potential health hazards, including toxicity and carcinogenic risks, its use is regulated in many countries, impacting global trade patterns.
Total Trade Volume
Approximately 1.2 million metric tons
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
350,000 metric tons
29% of global trade of total trade
Increasing
250,000 metric tons
21% of global trade of total trade
Stable
180,000 metric tons
15% of global trade of total trade
Decreasing
120,000 metric tons
10% of global trade of total trade
Increasing
100,000 metric tons
8% of global trade of total trade
Stable
Average Rate
5.5% ad valorem
Highest Rate
12% (imposed by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Shift towards alternative solvents
Reduced demand for dichloromethane in developed markets due to stringent regulations on toxic chemicals, driving innovation in greener alternatives.
2020-2022
Growth in pharmaceutical applications
Increased demand in emerging markets for dichloromethane as a solvent in drug manufacturing, offsetting declines in other sectors.
2021-2023
Rising production costs
Higher raw material and energy costs have led to price volatility, affecting trade competitiveness for smaller exporters.
2022
The European Union introduced stricter exposure limits and usage bans in consumer products under the REACH framework to minimize health risks.
June 2023
Significant reduction in EU imports and a shift in trade flows towards less regulated markets in Asia and Africa.
The U.S. Environmental Protection Agency proposed a ban on dichloromethane in consumer paint strippers, citing health risks, while allowing industrial use with strict controls.
April 2023
Potential decline in domestic demand, prompting US exporters to seek alternative markets in Latin America.
China announced investments in new dichloromethane production facilities to meet growing domestic and export demand, particularly in the Asia-Pacific region.
September 2022
Strengthened China's position as the leading exporter, potentially leading to oversupply and downward pressure on global prices.