DATE : 2017-11-15
BASF has declared force majeure on production of 2-ethylhexyl acrylate (2-EHA) at its Ludwigshafen facility in Germany, sources said on Wednesday.
There was no direct confirmation from BASF at the time of writing.
While several sources confirmed the news, one buyer said the producer had unexpectedly experienced technical problems which resulted in a prolonged shutdown period. BASF declared force majeure on 2-EHA after having difficulties in the start up of the plant after maintenance, according to the same buyer.
The buyer said that in a letter from BASF to its customers, the producer said the declaration would be in place until further notice.
One trader said: "2-EHA is really short now, we received several unexpected spot enquiries."
The buyer said the market for 2-EHA has been tight for the past month and said this could be attributed to the shutdown at Ludwigshafen.
"The market has been dealing with it for the past few weeks," the buyer said. "And the market is dropping away now for December, but with this now it could very well be that demand remains stable and you don't see the slowdown for the holiday period." The buyer added that the potential impact would depend very much on the duration of the declaration.
2-EHA is used in the manufacture of paints and adhesives.
Source Icis News