Subscriber note: ICIS has added a FD MED spot price assessment to the Perchloroethylene (Europe) report to reflect trades in the region. For more information, please contact Abache Abreu at abache.abreu@icis.com .
Despite production constraints, weak demand continues to exert downward pressure on perchloroethylene spot prices in Europe.
This is particularly the case in southern Europe, where prices have decreased by €10/tonne to €1,370-1,470/tonne FD MED.
In this region, market activity is expected to reach its lowest point during the next few weeks as the summer holiday season reaches its height.
NWE prices remain stable at at €1,430-1,600/tonne FD NWE. However, less business is done above €1,500/tonne.
Prices in eastern Europe are at €1,430-1,500/tonne. Some decreases are likely during August following slow demand and softer upstream ethylene values.
Export prices are at $2,000-2,200/tonne FOB NWE, unchanged from last week.
Production
Spolchemie's 15,000 tonne/year perchloroethylene plant at Usti nad Labem, in the north of the Czech Republic, will shut down on 8 August for three weeks in response to slow demand during the summer holidays.
The plant will continue to build inventories to ensure supply continues as normal until operations restart in the week beginning 29 August.
Elsewhere, Solvay Chemicals' 33,000 tonne/year perchloroethylene plant in Tavaux, France, has been shut down for five weeks because of technical problems.
The Belgium-headquartered company made its first restart attempt on 26 June, after a 12-day maintenance shutdown at the site.
Since then, several attempts to resume production have been made without success.
Supply of perc has been suspended since the beginning of July. The company was unable to provide a date for the next possible restart.
Upstream
The European ethylene contract settled at €1,120/tonne FD NWE for August, up by €30/tonne from July. The increase was driven by firm feedstock and a better-than-expected outlook for demand. Spot numbers are rising and have reached the low €1,000s/tonne on the pipeline.
Oil prices weakened on Tuesday on the back of concerns over economic growth in the US after data showed weak manufacturing figures.
At midday on Tuesday, September WTI was trading at $94.05/bbl, down $0.84/bbl from the previous close and September BRENT was trading at $116.22/bbl, down $0.59/bbl.
($1 = €0.70)
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