LONDON (ICIS)--After a long period of decline and stagnation in 2013, methylene chloride price have risen by €20/tonne on the low end of the assessed range as producers look to improve production margins, sources said on Tuesday.
This is the first rise in prices have risen since September 2013, according to ICIS data, with one producer adding that this was necessary as profitability for the chlorinated solvent has been poor for a long time.
“Buyers have pushed back but we cannot continue with these low prices,” the producer said. “Demand is pretty normal… I am optimistic that this is the start of an upward swing [in prices].”
A second producer had previously announced substantial increases of €60/tonne but such a large increase could not be widely confirmed in the market.
Today, a trader confirmed it is seeing prices inch up in January but believes more significant price firming will take place in February.The new northwest European methylene chloride range is €480-520/tonne freely delivered (FD).