24 March 2011 19:36 [Source: ICIS news]
Correction: In the ICIS story headlined “Dow to stop selling perc into ?xml:namespace>
HOUSTON (ICIS)--Dow Chemical said on Thursday that it will no longer sell perchloroethylene (perc) into the aerosol solvent market in
The announcement was not a surprise to market players, who said they had seen warning signs since November.
A source close to Dow said that perc is “something we don’t want to put into aerosols”.
The source said Dow will target its perc into more environmental and emissions-friendly applications.
The company said it does not have plans to enact similar restrictions for other chlorinated solvents, such as methylene chloride.
Sources said Dow's decision is unlikely to have much of an effect on the perc market, as other producers will take up the slack, and Dow will send its perc into other uses.
Occidental Chemical (OxyChem) and PPG Industries have filled the void left by Dow, the buyer said.
Buyers in the aerosol solvent sector said they had seen decreased offers from Dow as early as November, so they were not caught off-guard.
One buyer said that although Dow was planning to exit the market, it still offered the buyer 2-3 railcars of material.
US spot perc prices are assessed by ICIS at 84-94 cents/lb ($1,852-2,072/tonne, €1,315-1,471/tonne) FOB (free on board).
($1 = €0.71)
For more on perchloroethylene visit ICIS chemical intelligence
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