09 November 2010 20:48 [Source: ICIS news]
Correction: In the ICIS story headlined “Latin America chlorinated solvents supply remains tight”, please read the headline as “Latin America chlorinated solvents supply remains tight” ... instead of ... “US chlorinated solvents prices remain high on tight LatAm supply”. In the first paragraph, please read ... market sources said on Tuesday. ... instead of ... market sources said on Tuesday, noting that prices remain at all-time highs with further hikes possible. ... A corrected story follows.HOUSTON (ICIS)--Supply remains tight in Latin America for chlorinated solvents, market sources said on Tuesday.
Meanwhile, in the US Gulf (USG) region, prices were at all-time highs for each of the three main solvents. That included 50-55 cents/lb ($1,102-1,213/tonne, €793-873/tonne) FOB (free on board) for methylene chloride, 60-70 cents/lb FOB for perchloroethylene (perc) and 71-75 cents/lb FOB for trichloroethylene.
Market participants emphasised that supply was tight for each of the three solvents, as industry rationalisation in Europe had lowered capacity.
Of the three, supply for trichloroethylene was described as the tightest, followed by perc and methylene chloride.
Sources said that demand for the trio has been largely fuelled by the refrigerant segment, which uses the chlorinated solvents as feedstocks in various blends for home, automotive and commercial use.
US pending home sales increased 4.3% in August from July. US auto sales decreased 1% in October from September, but October featured one less selling day.
Despite the colder season approaching the USG region and the rest of North America, sources said that demand has remained strong. Market participants have speculated that refrigerant producers have been building inventories, keeping demand high.
Major US solvents producers include Dow, OxyChem and PPG Industries.
($1 = €0.72)
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