DATE : 2017-05-25
Dow Chemical lifted the last of its US acrylates order controls on Thursday, but extended other monomer sales limits “until further notice”.
In a letter to customers, Dow announced it is lifting sales limits on its butyl acrylate (butyl-A) and 2-ethylhexyl acrylate (2-EHA) and vinyl acetate monomer (VAM).
The letter, however, extended order controls on Dow’s methyl methacrylate (MMA), butyl methacrylate (BMA) and glacial methacrylic acid (GMAA).
In the 25 May letter, Dow also removed the 10-day lead-time requirement for all of its performance monomers, but asked customers to provide “as much lead time as possible”, citing heightened demand for the products via tank trucks.
One month ago, the company lifted sales controls on its glacial acrylic acid (GAA), ethyl acrylate (ethyl-A), methyl acrylate (methyl-A) and GMAA, but extended its sales limits on its other monomers.
In late December 2016 and early January 2017, Dow Chemical and another producer began implementing sales controls on acrylic monomers, stemming partly from a mid-October explosion at BASF’s Ludwigshafen complex in Germany, which eventually constrained US supply.
Acrylic monomers are commonly used to make products including paint and coatings, plastics and construction and pressure-sensitive adhesives.
Other US acrylic monomer suppliers include Arkema, BASF, Lucite, Evonik and Sasol.
Source Icis News
DATE : 2017-05-16
Germany-based oxo-alcohols producer BASF has declared force majeure on US butyl acrylate (butyl-A), according to a customer letter received on Tuesday.
Following an unplanned outage after an “equipment failure” at BASF’s butyl-A production unit in Freeport, Texas, the company notified customers about the force majeure declaration, saying the product is on allocation.
The company did not specify the percentage of that allocation, telling ICIS on Tuesday that its “account representatives are working closely with our customers throughout this process”.
“We do not know the anticipated duration of the plant shutdown at this time,” the BASF letter also stated. “It is unlikely that we will be able to supply all of our customers’ demand, and it may not be possible for us to supply all or some of the needs of non-contract customers.”
BASF added that each order will be subject to review and allocation during this time.
Acrylates already have been on sales control for several months from Dow Chemical and BASF, stemming from a mid-October 2016 explosion and fire at BASF’s plant complex at Ludwigshafen in Germany.
Dow lifted its sales control for most of the acrylates, effective 1 May, but is maintaining sales limits on its butyl-A and 2-ethylhexyl acruylate (2-EHA).
While May free-market contract prices have begun moving lower on softer upstream propylene pressure, recent April contract increases took glacial acrylic acid (GAA) values, for example, to a new range $1.09-1.11/lb ($2,403-2,447/tonne) FD (free delivered), as assessed by ICIS.
Acrylates are commonly used to make products including paint and coatings, plastics and construction and pressure-sensitive adhesives.
Other US acrylates suppliers include Arkema, Dow Chemical and Sasol.
Source Icis News
DATE : 2017-05-12
Lucite International declared force majeure this week, adding to the supply shortness in the European methyl methacrylate (MMA) market, sources said on Friday.
The plant is in the process of restarting, with it currently unclear when normal running rates will be achieved.
Demand remains strong, and many buyers are unable to obtain enough product to meet requirements.
Plastics demand is reasonable, with continued growth from the automotive sector, albeit at a lower rate than last year. Some polymethyl methacrylate (PMMA) buyers are looking at other products, because of the sharp increase in prices.
Third-quarter PMMA contract negotiations have started early, with significant increases being discussed so far. Evonik issued a press release last week saying it was targeting a 23% increase for PMMA for Q3 contracts.
Coatings demand is at the high point of the year, with the seasonal uptick at a reasonable level this year.
However, supply constraints continue to dominate discussions, with many players expecting continued tightness into late 2017.
Buyers are particularly concerned about supply at the end of May, with gaps in production heightened because of the Lucite force majeure.
While some buyers turned to other producers, following the Lucite announcement, others said looking for alternative product was futile, with none available.
Prices in Asia rose in the aftermath of the news, with Asian producers looking to Europe in pursuit of higher netbacks.
The impact on European spot prices was unclear, with no confirmed business heard this week, despite traders saying they received an increase in requests.
May contract negotiations continue, with triple-digit price increases once again being discussed.
The level of the increases targeted by some sellers were lower than in previous months, which could be linked to the stability in feedstock prices.
Contract negotiations continue and are expected to be ongoing for the next few weeks.
April contract prices settled at an increase of €150-200/tonne, bringing the range to €2,250-2,395/tonne FD (free delivered) NWE (northwest Europe)
Q2 MMA prices are at €1,950-2,030/tonne FD NWE, an €300/tonne increase from the first quarter.
MMA is used in the manufacture of acrylic sheet, surface coatings, emulsion polymers and adhesives.
Source Icis News
DATE : 2017-05-11
UK-based methyl methacrylate (MMA) producer Lucite International has declared force majeure (FM), according to a letter obtained by ICIS that was sent to customers on Wednesday.
Force majeure was declared on 10 May, with a technical issue resulting in the temporary shutdown of the facility.
Inventories were already at a low level, with dispatches of both MMA and methacrylic acid (MAA) being temporarily suspended until inventory is recovered, according to the letter.
It is not clear when the FM will be lifted.
Lucite International has the capacity to produce 200,000 tonnes/year of MMA from its Cassel facility in Billingham, northern England.
Global MMA supply remains short, on the back of a series of planned and unplanned outages and strong demand.
MMA is used in the manufacture of acrylic sheet, surface coatings, emulsion polymers and adhesives.
Source Icis News
DATE : 2017-05-04
Finland-based Nokian Tyres is planning to build its first North American tyre manufacturing plant in Dayton, Tennessee, the company announced late on Wednesday.
The company will be investing $360m to build the plant, which will concentrate on the production of car and light truck all-season tyres for North American vehicles.
The plant is expected to have a capacity to produce 4m tyres/year and will include a distribution facility with a storage capacity for 600,000 tyres. The facility will have room for Nokian Tyres to expand capacity to meet future demand.
The company plans to break ground on the project in early 2018 and start up tyre production in 2020.
Nokian Tyres has been best-known for producing winter tyre brands and said it has seen strong year-on-year growth in tyre sales in both Canada and the US.
In 2016, the company increased its warehouse capacity in North America with the opening of a distribution centre in Longueuil, Quebec, Canada, which has a storage capacity of 200,000 tyres.
Globally, Nokian Tyres has two other tyre manufacturing facilities in Nokia, Finland, and in Vsevolozhsk, Russia.
The tyre industry is a major consumer of styrene butadiene rubber (SBR), which is a derivative of butadiene (BD) and styrene.
Source Icis News
DATE :2017-05-07
Polystyrene (PS) production in Venezuela remains down at the local Estizulia plant because of lack of raw materials, a company source confirmed on Thursday.
The 70,000 tonne/year plant has been down since last October, when the company received a shipment of styrene and produced PS for about 15 days.
Plastic processors have resorted to imports from Brazil, Mexico or Colombia to supply their PS resin needs, but even these transactions have become difficult because of the lack of hard currency, local sources said.
The government of President Nicolas Maduro has been under pressure in recent weeks as Venezuelans started marching in the streets demanding solutions to the pressing shortages of basic household products, food and medicine.
The answer from the government has been repression and attempts to change laws with the objective of perpetuating the current power structure.
The government is ignoring suggestions by neighbouring countries to call immediate elections and has pulled Venezuela out of the Organization of American States (OAS).
The protests have resulted in a large number of injuries. Foreign governments are constantly making calls to find a peaceful solution.
The protests, either from the opposition or from government supporters, are causing major disruptions for companies, because many employees cannot reach their jobs on time. The marches usually cause the closure of metro stations, limiting people’s mobility.
Many employers dismiss employees early or alter schedules, seeking to increase the safety of their workers.
Venezuelans appear determined to continue protests until their demands are met.
Source Icis News