Dow to increase chlorinated solvent prices
01 November 2007 21:41 [Source: ICIS news]
HOUSTON (ICIS news)--Dow will seek to implement price increases for several chlorinated solvents effective 1 November or as contracts allow, the company said on Thursday.
The nominations include a 4 cents/lb hike for both perchloroethylene (perc) and trichloroethylene (TCE) and a 7 cents/lb price increase for chloroform and methylene chloride.
Sources said rising feedstock costs were driving the price hikes and would be matched by other producers. Last week, OxyChem made the initial 7 cents/lb price increase nomination for chloroform and methylene chloride.
“Ethylene prices are going through the roof. When it hits your [profit] margins, you have to act,” one producer said.
October contracts for ethylene, a key feedstock for perc and TCE, settled up 5 cents/lb from September, and producers have nominated November contract increases of 9-10 cents/lb.
October non-discounted contracts for methanol, a key feedstock for chloroform and methylene chloride, settled up from 96 cents/gal from September, and two leading North American suppliers nominated November contract price increases of 30 and 40 cents/gal.
One perc buyer said it lacked the bargaining power to negotiate a lower price increase.
“We would definitely have to pass the increase along to our customers before too long,” the buyer said.
Reflecting the price hike, US chloroform domestic spot prices were 43-49 cents/lb ex-tank, while exports were in the 45-48 cents/lb FOB (free on board) USG range, according to global chemical market intelligence service ICIS pricing.
Methylene chloride domestic spot prices were 42-46 cents/lb ex-tank. Exports were 32-36 cents/lb FOB USG.
The proposed price hike for perc would push domestic spot prices into the 41-47 cents/lb ex-tank range on the
Domestic TCE spot prices would increase to 51-58 cents/lb ex-tank on the
By: Greg Holt
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