Europe methylene chloride spot rises $50/t on surging demand

02 March 2010 23:59  [Source: ICIS news]

LONDON (ICIS news)--European methylene chloride spot prices rose by $50/tonne (€68/tonne) as global demand surged and European supply tightened, market sources said on Tuesday.

The spot price was assessed at $650-750/tonne FOB (free on board) NWE (northwest Europe), up $50/tonne from the previous week, according to data from global chemical market intelligence service ICIS pricing.

Demand for methylene chloride on the export market had been steadily increasing since January, producers said, which had pushed prices to levels some had not previously expected. Several sellers reported export deals in the range of $850-890 CFR (cost and freight), while others said their lowest-priced deals were at $650 FOB NWE.

“I’m surprised by the demand,” one producer said, adding that it had not seen export prices at these levels in 10 years of business. “I’m not sure how long it will last.”

Continual requests have poured in from across the globe – particularly India and China. One producer in India was reported to be undergoing maintenance, which led buyers in the region to seek product elsewhere, but this could not be confirmed with the producer.

Market participants also suggested that Asian suppliers had yet to come fully back online after the Lunar New Year celebrations.

In the upstream markets, methanol spot prices edged higher by €12/tonne in Europe during the week ended 26 February to €235-235/tonne FOB Rotterdam, supported by news that Mider Helm’s 660,000 tonne/year plant at Leuna, Germany, would likely be out until mid-March at the earliest.

Caustic soda prices were assessed as stable at $185-200/dry metric tonne (DMT) FOB NWE and MED for the week ended 26 February.

($1 = €0.74)

For more on methylene chloride visit ICIS chemical intelligence
Please visit the complete ICIS plants and projects database
To discuss issues facing the chemical industry go to ICIS connect

By: Libby George
+44 208 652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly