19 January 2011 21:13 [Source: ICIS news]
HOUSTON (ICIS)--INEOS Chlor Vinyls nominated a 5 cent ($110/tonne, €83/tonne) price hike for methylene chloride effective 1 January or as contracts allow in the US, followng similar initiatives by two other producers in November, sources said on Wednesday.
Those price increases were proposed on 19 November and were accepted almost immediately, buyers said.
The nominations were fuelled by a surge in the November methanol contract price, which increased by 29-32% that month.
INEOS did not join Dow and OxyChem in seeking a price increase for methylene chloride in November, instead focusing on pushing through the remainder of a previous initiative.
Currently, US methylene spot prices are at 55.00-60.00 cents/lb FOB (free on board) as assessed by ICIS.
In the Latin American market, a source said Dow was seeking a price increase for methylene chloride, stemming from increased demand for feedstock chloroform in Asia.
The price initiative was for 5 cents/lb effective 1 February or as contracts allow, a source close to the company said.
Demand for methylene chloride remains strong, lending support to the nomination.
ICIS does not track or receive the base price for methylene chloride in Latin America.
($1 = €0.75)
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