LONDON (ICIS)--Availability of European methylene chloride is falling on the back of recent and ongoing maintenance outages but spot prices have been assessed stable as sellers are reluctant to risk market share in a traditionally quiet month, sources said on Wednesday.
Although no specific maintenance outage could be confirmed at the time of writing, it is widely believed that availability has been reduced to falling production at this time.
Demand is low as many participants are absent from trading due to summer holidays. For this reason, sellers are holding off on planned increases until September.
A seller noted methylene chloride prices must continue to rise in the near future as caustic soda, a co-product of chlorine, remains weak and therefore profitability of methylene chloride must improve.
Prices were quoted up to €610/tonne free delivered (FD) northwest Europe (NWE) but numbers this high could not be widely confirmed in the market. The range was assessed steady at €500-530/tonne FD NWE.