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Updated to Q2 2018
The quarter began with stability for European methylene chloride, which was soon tipped towards tightness with a number of shortages occurring sequentially in Europe. Constraints were noted at INOVYN as the producer struggled to restart production following a planned turnaround in April. In late May KEM ONE conducted a two week planned shutdown, while Olin carried out a month-long planned turnaround. Both producers restarted production in June as planned. However, sources mentioned limited volumes in southern Europe remained an issue towards the end of the quarter. Additionally, methylene chloride supply was limited from AkzoNobel in June as the producer had a force majeure in place on chloroform and methyl chloride.
Demand was stable at the beginning of the quarter and increased due to supply shortages in the market. Spot prices increased as a result of healthy demand in May and June. Demand for European product was healthy both domestically and overseas. There is continued strong demand for European exports in regions such as the Middle East and Africa, as Chinese exports to these parts remain lower in comparison to last year.
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ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
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