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Updated to Q3 2017
The methylene chloride market was tight coming in to July as AkzoNobel lifted its force majeure on chloromethanes at Frankfurt, Germany in the first week of the month. Supply remained tight in July, though the supply constraints eased gradually. The market stabilised as it entered the summer period, which is traditionally quieter in terms of business activity. By mid-August supply and demand fundamentals had balanced out. The impact of Hurricane Harvey disrupted imports from the US to Europe, and Olin declared force majeure on its shipments from Freeport, Texas at the end of August. Olin also began its planned turnaround at Stade, Germany in September. Logistics issues delayed deliveries in Europe due to the German rail disruption. Supply was limited at the end of the quarter.
Methylene chloride demand was strong as the quarter began, as the market had faced a series of supply outages. After AkzoNobel lifted its force majeure in July supply was still limited, and demand remained strong. During the summer period, demand slowed down, as it traditionally does. Demand was said to be lower in the Mediterranean, especially in August. Demand was steady in northwest Europe during the summer. Demand increased once more as the quarter ended and supply constraints returned.
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