US Oxy announces chloride price hike proposal

29 November 2007 22:15  [Source: ICIS news]

HOUSTON (ICIS news)--Occidental Chemical (Oxy) nominated on Thursday a 7 cent/lb ($154/tonne) increase for four of its North America chlorides, citing the continuous climb of feedstock methanol prices.

The increase proposal for methyl chloride, methylene chloride, carbon tetrachloride (CTC) and chloroform is effective immediately for spot purchases and within 30 days for contract customers, an Oxy spokesman said.

The latest nomination is Oxy’s second in just over a month for methylene chloride. If fully implemented, it would raise the methylene chloride price range by 14.00 cents/lb. The range is currently 44.00-48.800 cents/lb ex-tank US east coast and 32.00-36.00 cents/lb FOB (free on board) USG (US Gulf). 

The spokesman attributed the latest increase nomination to the continuous climb in feedstock methanol costs and hinted that an additional increase might be necessary in the near future, depending on whether methanol prices stabilise.

Methanol suppliers nominated a 280 cents/gal FOB USG hike during the week ended 21 November, up by 75 cents from the previous month, according to global chemical market intelligence service ICIS pricing.

Oxy may not be alone in the increase announcement, as two other major chlorine solvents producers hinted on Wednesday that they too were considering further price hikes.

Buyers had indicated earlier that they wouldn’t put up too much resistance to cost increases, saying that they were resigned to industry-wide price hikes.

($1.00 = €0.67)

By: Ben Lefebvre
+1 713 525 2653

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