Europe methylene chloride tight with limited supply, healthy demand

LONDON (ICIS)–The European methylene chloride market was tight this week, according to market feedback, with limited supply in some parts of the region due to outages and logistical issues amid healthy demand.

Olin’s facility in Freeport, Texas, declared force majeure on all product shipments at the end of August, due to the impact of Hurricane Harvey in the US. Force majeure on shipments of methylene chloride currently remains in place, according to a company statement.

Meanwhile,  in northwest Europe Olin’s planned turnaround at Stade, Germany, continues on schedule. 

The German Rhine Valley rail route re-opened earlier this week, five days ahead of schedule.

Deliveries from a number of European plants have been affected by the recent German rail disruption. The closure of the rail route has forced some producers to use trucks as an alternative method of transportation between northern and southern Europe.

This has led to an increase in freight rates, and a shortage of iso tanks, according to one source.

However, one European producer said it was unaffected by the closure.

Market conditions in parts of the Mediterranean were stable, according to one source.

However, most players agreed that demand had increased in the Mediterranean, especially in Italy, as a result of the German rail disruption.

In the export market, additional enquiries have been made from buyers in the US, northeast Asia and Asia Pacific, according to one European producer. 

Spot prices remain stable at €550-630/tonne FD (free delivered) NWE (northwest Europe) and the Mediterranean.