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The chloromethane industry represents an attractive venture for new entrants in the chemical manufacturing vertical. Many different industries rely on chloromethane and its derivatives (e.g. Methyl Chloride, Methylene Chloride, Carbon Tetrachloride, Chloroform) for production. This overview explains the opportunity available to new entrants by showing the manufacturing, export, and market opportunity for chloromethane.
Chloromethane and its derivatives
Chloromethane (CH3Cl) is a colorless and flammable gas which is predominantly used as a chemical building block, and its derivatives are equally valuable to many industries including pharmaceuticals, agrochemical, refrigeration and industrial cleaning.
1. Methyl Chloride
- Used to synthesize silicones, agrochemicals and pharmaceuticals.
- Serves as a methylating agent in organic syntheses.
2. Methylene Chloride (Dichloromethane)
- Commonly used as a solvent in paint removers, adhesives, and cleaning.
- Also used in the food industry for extracting caffeine (decaffeination).
3. Carbon Tetrachloride
- Historically used as a fire extinguisher and in refrigeration.
- Currently used for producing refrigerants and chlorofluorocarbons.
4. Chloroform
- Is used as a precursor to producing refrigerants.
- Is also used in organic syntheses and in the pharmaceuticals.
Current and Future Marketing Conditions
There are a multitude of upcoming opportunities in the Chloromethane market as a result of the ever expanding applications of it and its derivatives.
The global chloromethane market is projected to grow (CAGR of ~5%) to a worth of $4B by 2023.
- Demand Drivers: Rapid industrialization, improvements in methodologies for chemical synthesis, and continuous growth in the pharmaceutical and agrochemical sectors.
- Regional Insights: Asia-Pacific region leads the market, spearheaded by manufacturing and consumption in China and India.
There are great export opportunities, especially for Methyl Chloride and Methylene Chloride, which are used in the pharmaceutical and refrigerant sectors. These products are in strong demand in Europe and North America.
Reasons for Entrepreneurs to Venture into Manufacturing of Chloromethane
1. Multiple Uses: The various applications for the derivatives of chloromethane justify the consistent demand, thus balancing the risk of market changes.
2. The Market is Expanding: The global scenario favors advanced manufacturing tactics and sustainable refrigerant solutions, contributing to the increased relevance of products derived from chloromethane.
3. Potential for Exports: The request for advanced, high-quality chemical products presents a lucrative market in developed countries.
4. Raw Materials are Available: The production of chloromethane can utilize raw materials, which are economically available, like methanol and hydrogen chloride.
5. Support from the Government: Various countries, India included, have provide support for chemical manufacturing, like the case of “Make in India.”
Potential for Market Size and Exports
- Methyl Chloride: Especially for the production of silicones and pharmaceuticals, high export potential to US and Europe.
- Methylene Chloride: Serves a large industrial market and food industry, and dominates the solvent market.
- Carbon Tetrachloride: Limited use domestically, but has high export potential as a sub-component for the manufacture of fluorocarbons.
- Chloroform: There is consistent demand from the synthesis of anesthetics in the pharmaceutical industry.
Conclusion
The chloromethane sector has a strong demand for new businesses and offers good market and export prospects. It has easily accessible raw materials and modular production, so the ROI will be positive. Entrepreneurs will be able to use strong market potential and support the development of major markets, including pharmaceuticals, agrochemicals, and refrigeration.
| Plant capacity | Plant & machinery | Working capital | Cost of Project | T.C.I | Return | Break even |
|---|---|---|---|---|---|---|
| Methyl Chloride: 2837 MT Per Annum Methylene Chloride: 7674 MT Per Annum Chloroform: 2619 MT Per Annum Carbon Tetrachloride: 290 MT Per Annum Excess HCl (by Product): 154 MT Per Annum | 5600 | N/A | 7700 | 25 | 58 |
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