US spot perchloroethylene (perc) prices were stable for the week ended 2 August, with buyers and sellers in agreement regarding the posted range.
Producers said that perc continues to sell at strong margins, and buyers said they continue to worry about demand destruction if prices move higher.
Buyers said in recent months that they had looked at changing their formulas on perc-based products and that their customers had started looking for solvents based on other feedstocks.
In the refrigerants liquids market, however, margins remained strong and there were fewer concerns of demand destruction. Demand was softening, sources said, because of seasonal factors.
Also, a source said that some refrigerant liquids producers might shift over to trichloroethylene (TCE) when possible, as it remains at a discount of 14-20 cents/lb ($309-441/tonne, €216-309/tonne) to perc.
However, some sources said TCE prices were starting to rise to take advantage, but that perc prices were unlikely to increase further.
Supply of perc remains constrained, although buyers said they were able to source more material from Asia at cheaper prices.
Producers argued that this option was limited, however, because the imported perc was not as high quality as US product.
Perc exports were at strong margins, a producer said, but volumes were low because most material was allocated to US buyers.
($1 = €0.70)
This week on ICIS ( www.icis.com ):
02/08/2011 22:10 US chlorinated solvent prices may rise on strong demand
02/08/2011 21:57 US chems fall as Dow Jones Industrial Average drops 266 points
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01/08/2011 20:58 US ethylene margins rise 5% on higher spot prices
