Subscriber note: ICIS has added a FD MED spot price assessment to the Methylene Chloride (Europe) report to reflect trades in the region. For more information, please contact Abache Abreu at
abache.abreu@icis.com .
In the European methylene chloride market, softer spot values have been heard among suppliers because of the traditionally weaker demand in the summer holiday season.
One major northwest European producer said prices had decreased by €20/tonne to €800/tonne FD NWE. Other producers have confirmed business done in the high €700s/tonne.
Prices in the Mediterranean are at €650-700/tonne FD MED. Whereas in Italy most business is done at €650-680/tonne, prices at €700/tonne have been heard in the Spain and southern France markets.
Poor macroeconomic conditions are affecting activity in the export market, with several suppliers saying there has been a slight decrease in enquiries. According to a trader, prices have fallen by $10-20/tonne.
However, two major exporters have confirmed business at $1,000-1,100/tonne FOB NWE.
There has also been an increasing number of enquiries from South America. This is believed to be caused by short availability in the region.
According to a trader, prices in South America are at around $1,100/tonne CFR NWE, which is approximately $1,020-1,025/tonne FOB NWE.
Recent exports to India were heard at $900-1,000/tonne FOB NWE.
Upstream
Europe methanol spot prices firmed in the week ending 29 July by €2-5/tonne FOB Rotterdam, with trades confirmed at €257-263/tonne.
The unexpected shutdown of the 1.7m tonne/year Atlas plant in Trinidad was held largely responsible, although some sources thought this was secondary to the firming effect of the tight Asian market.
Caustic soda spot prices fell $20/dmt in the Mediterranean, to $330-350/tonne FOB MED, because of weak demand and increased supply.
Spot prices in northwest Europe fell by $20/tonne at the top end of the range to $350-370/dmt FOB NWE, also because of declining demand.
Nevertheless, caustic soda consumption in northwest Europe is higher than in southern Europe because of stronger GDP growth across the region, particularly in Germany.
($1 = €0.70)
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