Europe
The European hydrochloric acid (HCl) markets are stable, with balanced supply and demand, and a rollover in prices at €68-85/tonne FD Germany, €80-120/tonne FD Belgium, €70-110/tonne FD MED and €90-120/tonne FD N. France.
Spot prices are expected to increase by €5-10/tonne in France next month because of healthy demand and higher logistical costs, producers said.
Also, growing captive consumption of HCl has limited product availability for the spot market, one supplier said.
Novacid’s new 50,000 tonne/year ferric chloride unit, in Pont de Claix, France, is expected to cause some tightness from mid-August, when it will increase its running capacity from 50% to 80-100%, absorbing up to 40,000 tonnes/year of HCl.
Pending further confimation, prices remain at €90-120/tonne FD N. France.
Some prices in Italy have decreased by €6-7/tonne, according to a buyer who is purchasing HCl at €81-82/tonne, down from €88/tonne in June. No deals have been done below €70/tonne.
Market fundamentals in Belgium remain stable, with balanced supply and demand and a rollover in prices.
Prices in the Netherlands are at €100-110/tonne, a buyer said. The market is described as stable and balanced.
In production news, TIB Chemicals will shut its 65,000 tonne/year HCl plant at Mannheim, southern Germany, for two weeks of maintenance starting on 5 September, a company source said.
The operations will coincide with a catalyst change and are expected to increase the German specialty chemicals manufacturer HCl nameplate capacity by 20%.
This is likely to stabilise the HCl market in southern Germany, which has been balanced to tight since the closure of Germany chemical company Wacker Chemie’s Kempten site on 1 June.
TIB Chemicals sells most of its HCl output, which has a concentration level of 30–32%. Less than 10% of its production is used captively.
Supply is unlikely to be affected by the maintenance operations, the source said.
Americas
US HCl market participants expected supply to tighten in the next few months, as demand remains strong, sources said during the week ended 29 July.
A $30/short ton (st) (€21/st) price hike announced last week was likely to be applied in the market, sources said.
The announcement was initially heard to take effect in September, but a source confirmed this week that the increase was intended to be applied for 1 August pricing.
One producer said the increase is likely to take hold because by-product supply is expected to be ratcheted down in the next few months, while demand is likely to remain strong.
The source confirmed prices in the $90s/st for the US Gulf this week, while delivered prices were in the $110s/st range.
At least one producer was heard to have low inventories.
Market participants are expecting supply to tighten by the second half of the year. The year began with well-stocked inventories and some viewed the market as oversupplied.
Throughout the year, supply has matched demand.
Covering Editor: Ruth Liao
($1 = €0.70)
This week on ICIS ( www.icis.com )
29/07/2011 14:17 TIB Chemicals to shut HCl plant for maintenance in September
29/07/2011 13:00 Rhodia signs definitive agreements for the sale of its salicylic and acetaminophen activities to Novacap
26/07/2011 20:54 US OxyChem expects moderation in second half on seasonal slowdown
