Zhejiang Yonghe Refrigerant (SH:605020) Chan Ye Xin Xi Wang·2025-11-24 00:57Core Viewpoint - The methane chlorides industry in China is experiencing significant growth in production capacity and output, with a projected total capacity of 3.84 million tons per annum by 2024, accounting for 48% of global capacity. The industry is expected to face increasing supply pressures, leading to potential market reshuffling and heightened competition among companies [1][5][6]. Industry Overview - Methane chlorides are products formed by substituting hydrogen atoms in methane with chlorine atoms, including methyl chloride, dichloromethane, trichloromethane, and carbon tetrachloride. They are widely used in refrigerants, solvents, coatings, film, acetate fibers, carbonates, and extraction agents [2][4]. Production Capacity - By 2024, there will be 16 methane chloride production enterprises in China, with a total capacity of 3.84 million tons per annum, representing 48% of global capacity. The production capacity is highly concentrated in East and North China, which together contribute 87.5% of the national capacity [5][6]. Production Volume - China's methane chloride production is expected to reach 3.07 million tons in 2024, reflecting a year-on-year increase of 5.9%. The capacity utilization rate is projected to be 79.9%, up by 4.4 percentage points from the previous year [6][7]. Market Demand - The consumption of methane chlorides is primarily driven by dichloromethane and trichloromethane. In 2024, the total consumption of dichloromethane is estimated at 1.337 million tons, a slight decrease of 1.5%, while trichloromethane consumption is expected to reach 1.349 million tons, an increase of 9.6% [8][10]. Competitive Landscape - The domestic market for methane chlorides is competitive, with over ten companies operating. Companies like Jinyi Technology and Yonghe Co. are actively optimizing their business layouts to enhance market competitiveness. Jinyi Technology has an annual production capacity of 370,000 tons, accounting for 9.6% of national capacity, while Yonghe Co. has a capacity of 197,000 tons, representing 5.1% [12][13]. Industry Development Trends - The methane chlorides industry is expected to face increasing supply pressures, leading to a supply-demand mismatch and potential market reshuffling. The trend of vertical integration in the industry is becoming more pronounced, with companies looking to extend their supply chains into downstream products such as refrigerants and high-performance fluoropolymers [13][14].