Methylene Chloride Procurement Research – Market Trends and Spend Analysis by SpendEdge

March 15, 2018

LONDON–(BUSINESS WIRE)–#methylene–Global procurement intelligence advisory firm, SpendEdge,
has announced the release of their ‘Methylene
Chloride Market Procurement Research Report.’ The insights and
data in this report provide a strategic analysis of the supply markets,
factors influencing purchasing decisions, procurement best practices,
pricing models, supplier landscape, and an analysis of the supplier
capability matrix for the chemicals
industry. This report breaks down the data and analysis behind
the procurement of methylene chloride and acts as an all-inclusive guide
for making smart purchasing decisions.

“The global demand for methylene chloride can be attributed to the
increasing demand from the food and beverage industry to use methylene
chloride as an extraction solvent that helps to remove caffeine from tea
and coffee seeds,” says SpendEdge procurement analyst Tridib Bora.
“Also, leading suppliers are increasing their investment in R&D by
collaborating with buyers across end-user industries to identify new
applications of methylene chloride,” added Tridib.

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Procurement analysts at SpendEdge highlight the following top three
market trends that are contributing to the growth of the Global
Methylene Chloride Market:

Expansion of production facilities
Oversupply of methylene chloride, leading to drop in prices
Increasing preference of buyers to procure methylene chloride from
low-cost countries

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Expansion of production facilities:

Globally, suppliers of methylene chloride are focusing on increasing
their investments to expand production facilities due to the high
availability of raw materials. Moreover, this will help suppliers to
meet the growing demand for methylene chloride. Also, with the expansion
of production facilities and increase in supply, the cost of methylene
chloride is likely to be reduced.

Oversupply of methylene chloride, leading to a drop in prices:

The expansion of production capacities has increased the supply of
methylene chloride which has exceeded its demand. This has also resulted
in a drop in prices of methylene chloride and a decrease in exports from
countries such as China. Additionally, this has created a considerable
price gap leading to an increase in competition among the suppliers to
provide methylene chloride at competitive prices.

Increasing preference of buyers to procure methylene chloride from
low-cost countries:

There is an increase in preference among the buyers to procure methylene
chloride from countries such as Taiwan, South Korea, and China. This can
be attributed to several factors such as the ability of suppliers
operating in these countries to manufacture methylene chloride at low
costs due to the availability of low-cost labor and low energy costs. It
also increases the negotiation power of buyers as the suppliers have
higher profit margins.

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Anirban Choudhury
Marketing Consultant
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630 984 7340
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