INEOS joins new wave of chlorine solvent hikes
06 December 2007 19:13 [Source: ICIS news]
HOUSTON (ICIS)--Chlorine solvents (chlor solv) buyers faced more bad news on Thursday as INEOS Chlor became the third major supplier to announce a second wave of price increase nominations in the past month.
The company proposed increases of $140/tonne (6 cents/lb) for methylene chloride and chloroform, and $40/tonne (2 cents/lb) for perchloroethylene (perc) and trichloroethylene (TCE) for its North American spot markets, effective 1 January or as contracts allow.
The chlor solv price proposal is INEOS’ second since early November. The company did not respond before press time to calls asking what factors motivated the latest proposal.
Dow Chemical and Occidental Chemical also announced two sets of price increases during the past month, citing rising energy and feedstock ethylene costs. The first set of hikes is likely to be implemented in the coming week, sources said.
Buyers have indicated throughout the recent price adjustment announcements that they were resigned to accept the initial increases given the motives touted by producers, but were showing signs of resisting a second hike.
Some buyers have said that although they understood rising production costs could necessitate one increase, ample supplies of chlorine solvents might dissolve the momentum of the back-to-back hikes.
Taken together, an overall 14 cents/lb increase in methylene chloride and chloroform and 6-8 cents/lb rise in perc and TCE would be the first chlor solv rate hikes in about a year, ending an era of flat-to-decreasing prices, according to global chemical market intelligence service ICIS pricing.
The price range for methylene chloride is currently 44.00-48.80 cents/lb ex-tank US east coast and 32.00-36.00 cents/lb FOB (free on board) USG (US Gulf).
Perc is currently commanding 41.00-47.00 cents/lb ex-tank
Chloroform prices are currently assessed at 43.00-49.00 cents/lb ex tank and 45.00-48.00 cents/lb FOB USG.
By: Ben Lefebvre
+1 713 525 2653
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