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
DATE : 2017-11-03
Arkema has shifted volume constraints on its US acrylic acid and acrylate esters to 100% sales control from previous force majeure (FM) status, the France-based petrochemical producer said on Friday.
Affected products include glacial acrylic acid (GAA), butyl acrylate (butyl-A), ethyl acrylate (ethyl-A), methyl acrylate (methyl-A) and 2-ethylhexyl acrylate (2-EHA).
Arkema lifted force majeure on its acrylates just before it announced the new sales controls.
The company did not indicate how long the sales controls would be in effect, but said in a letter to customers that it is experiencing strong demand.
Arkema declared force majeure on its acrylates on 31 August, stemming from production and transportation problems arising from Hurricane Harvey, which struck the US Gulf coast on 25 August. Arkema shut down its American Acryl plant in Bayport, Texas – a joint venture with Nippon Shokubai subsidiary NA Industries – just ahead of Harvey's landfall.
Although the plant restarted in September, the precautionary shutdown and other producers' outages during and after the storm tightened supply throughout the domestic market in an environment of steady, healthy buying interest.
October's acrylates increases moved the GAA range, for example, to 0.98-1.06/lb ($2,161-2,337/tonne) FD (free delivered), as assessed by ICIS.
Source Icis News
DATE : 2017-10-27
An explosion at Synthomer's Sokolov acrylic acid (AA) facility this week is not expected to affect availability of product or capability to supply, a source from the company said on Friday.
The company said in a statement that an explosion was reported in the bulk storage area of Synthomer in Sokolov, Czech Republic on 25 October, at 08h45. Synthomer have production facilities for AA, acrylates and dispersions at this site.
"The cause of the incident is unknown at this time, but a full investigation in conjunction with the local authorities has been initiated. The incident happened during maintenance work on a methyl acrylate (methyl-A) storage tank," the statement said.
No injuries resulted from this incident, and no further offsite impact is anticipated, the statement added.
Synthomer is undergoing planned maintenance at its AA facility in Sokolov, which is scheduled to be completed by the end of the month.
The turnaround is taking place on one of its two AA lines at Sokolov, and began at the end of September.
Synthomer has the capacity to produce around 55,000 tonnes/year of acrylic acid.
Acrylic acid is used as a raw material to make superabsorbent polymer (SAP) for the manufacture of disposable nappies, surgical pads and other personal care items.
Source Icis News
New production hub in Changzhou to start operations during 2020
Givaudan today laid the foundation for a new production hub in Changzhou, Jiangsu Province of China. This investment reiterates the Company’s commitment to continue investing in high growth markets such as China.
Located in one of the most economically developed areas of China, the new site will substantially increase Givaudan’s manufacturing capacity whilst maintaining best-in-class service levels to its customers across North East Asia. With a total investment of approximately CHF 100 million, it is Givaudan’s largest investment in China to date.
Speaking at the ceremony, Givaudan Chief Executive Officer, Gilles Andrier said:
“This investment in this key high growth market is another significant milestone in achieving our 2020 strategy ambitions. By further building our capability in China, we confirm our position as a strategic partner to our customers in the region. We aim to continue growing with them to anticipate and meet future consumer needs and preferences in fragrances.”
The new hub represents a land area of 76,000 square metres. The state-of-the-art compounding technology will have a very high degree of automation and will be deployed on a wide range of processes for fragrance manufacturing. The new production hub is expected to start operations during 2020.
Maurizio Volpi, President of Givaudan’s Fragrance Division said:
“The new fragrance production hub will cover all the key product forms such as fragrances, oral care flavours, and encapsulation in the same location. After our major investment in Singapore, we continue our expansion in Asia by laying the foundation of this very large facility in China, which demonstrates our long term commitment in the region. It will support us in continuing to build on the strong partnerships that we have with our customers in the country.”
“As a leader in fragrance creation, Givaudan intends to fully capture market opportunities by leveraging our global knowledge and technologies while developing local activities, infrastructure, talent and consumer understanding. By investing in Changzhou, we are not only building a world-class fragrance facility, but we also aim to be an employer of choice and a good corporate citizen in the area,” commented Georges Sanchez, Company Manager of Givaudan Fragrances (Changzhou) Limited.
Ding Chun, Mayor of Changzhou Municipal People’s Government, joined Givaudan’s CEO, Gilles Andrier to unveil the corner stone at the ceremony.
Source: Givaudan Website
Oct 23 , 2017
DATE : 2017-10-22
US November acrylates price-hike initiatives emerged on Friday from major producer BASF, which is seeking gains of 3 cents/lb ($66/tonne) for its glacial acrylic acid (GAA) and the acrylate esters.
In a letter to its customers, BASF did not provide specific rationale for its proposal, but stipulated an effective date of 1 November.
Feedstock pressure and supply constraints previously prompted separate October increase initiatives of 9-10 cents/lb ($198-220/tonne), which are beginning to settle moderately below sellers' targets.
Supply limits remain in place, but have eased since Hurricane Harvey hit the US Gulf Coast in late August.
Also this week, BASF lifted its force majeure on GAA, but did not confirm whether its acrylates remained on sales control as they had been for several weeks.
Last month, US September acrylates settled flat from August as US producers and customers contended with production and transportation disruptions caused by Harvey.
The rollover held the September butyl acrylate (butyl-A) contract range, for example, at 91-95 cents/lb 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.
Source Icis News
DATE : 2017-10-13
Dans le cadre de la Stratégie nationale sur les perturbateurs endocriniens (SNPE), l'Anses a publié les résultats d'évaluation de cinq substances chimiques suspectées d'être perturbatrices endocriniennes. Ont également été publiés les derniers travaux relatifs à l'évaluation des risques sanitaires liés à l'exposition à des substances reprotoxiques de catégorie 2 et/ou perturbateurs endocriniens présentes dans des produits de consommation. Ces trois rapports sont relatifs à l'état des connaissances sur les usages, les sources d'exposition et la toxicité de plusieurs substances de la famille des polybromés. L'Agence poursuit actuellement ses travaux par l'évaluation des cinq substances inscrites à son programme de travail 2017 dans le cadre de la SNPE.
De nombreuses substances chimiques peuvent modifier le fonctionnement du système hormonal et certaines substances sont suspectées d'entraîner des effets néfastes pour la santé humaine et l'environnement par ce mode d'action. Face à ce défi, l'Anses se mobilise depuis de nombreuses années et poursuit ses travaux d'expertise sur ce thème.
Cinq substances expertisées en 2016 dans le cadre de la SNPE
Le Plan national santé environnement 2015-2019 (PNSE3) se donne pour ambition de contribuer à la mise oeuvre de la SNPE et a confié à l'Anses la charge « d'évaluer de manière plus précise et ciblée, le danger et l'exposition des populations et de l'environnement à certaines substances perturbateurs endocriniens pour mieux les gérer ». Dans ce cadre, l'Anses s'est vue confier l'expertise d'au moins cinq substances par an. L'Anses a rendu public l'avis relatif à l'évaluation des cinq substances inscrites à son programme de travail 2016 : TMBPF (4,4'-méthylènedi-2,6-xylénol), triclocarban, RDP (tétraphényl m-phénylène bis(phosphate), dicyclopentadiène et sulfate d'étain.
Ainsi, le TMBPF, le triclocarban et le RDP ont fait l'objet d'une analyse des meilleures options de gestion des risques[1], suivant la procédure utilisée par l'Agence européenne des substances chimiques (ECHA) et les Etats membres de l'Union européenne dans le cadre du règlement REACh[2] .
Le dicyclopentadiène et le sulfate d'étain ont fait l'objet d'une évaluation au titre du règlement REACh[3] en raison, respectivement, d'une suspicion d'effet reprotoxique et d'une suspicion de propriétés cancérogène mutagène reprotoxique (CMR) et d'effet sensibilisant.
Dans le cadre de la SNPE, cinq autres substances font actuellement l'objet de travaux d'expertise inscrits au programme de travail 2017 de l'Agence : l'homosalate, le triflusulfuron méthyl, le triphényl phosphate, le bisphénol B et le BDE-47.
Usages, sources d'exposition et toxicité de substances de la famille des polybromés
L'Anses a été saisie en 2009 par la Direction générale de la santé afin d'identifier et de caractériser des situations d'exposition potentiellement à risque pour la santé, notamment des populations les plus vulnérables, liées à l'utilisation de produits de consommation courante et d'articles contenant certaines substances chimiques.
Trois rapports relatifs à l'état des connaissances sur les usages, les sources d'exposition et la toxicité de plusieurs substances de la famille des polybromés, couramment utilisés comme retardateurs de flamme dans la fabrication de meubles et matériels électroniques ont été publiés. L'objectif était de caractériser les principaux effets toxiques en lien avec une exposition à ces composés et de déterminer les sources majeures d'exposition humaine.
Au terme de cette analyse, certains composés bromés tels que les BDE 28, 47, 99, 100, 153, 154, 183 et 209, le tétrabromobisphénol A (TBBPA), l'hexabromocyclododécane (HBCDD) ont été considérés comme pouvant justifier une évaluation dans le cadre du règlement REACh. Le BDE-47 a quant à lui été retenu en vue d'une évaluation de son potentiel perturbateur endocrinien pour l'Homme et pour l'environnement, au titre du programme de travail de l'Agence en 2017, dans le cadre de la SNPE. Les travaux d'expertise sur cette substance sont en cours.
Ces trois rapports constituent le dernier jalon des travaux d'expertise qui ont été conduits et publiés par l'Agence, à la demande du ministère chargé de la santé en 2009, sur une trentaine de substances chimiques reprotoxiques de catégorie 2 et/ou perturbateurs endocriniens présentes dans des produits de consommation. Ces publications ont porté notamment sur le bisphénol A et d'autres bisphénols, les phtalates, les composés perfluorés.
Le bisphénol A reconnu pour ses propriétés de perturbation endocrinienne par l'ECHA
Rappelons par ailleurs que l'Anses a soumis en février 2017 auprès de l'ECHA une proposition de classement du bisphénol A comme substance extrêmement préoccupante (SVHC-substance of very high concern) dans le cadre du règlement européen REACh, au titre de ses propriétés « perturbateur endocrinien » pour la santé humaine. Cette proposition a été adoptée par le comité des Etats membres de l'ECHA au mois de juin 2017. L'inscription du bisphénol A sur la liste des substances extrêmement préoccupantes ouvre la possibilité d'en limiter l'usage, en conditionnant son utilisation à l'octroi d'une autorisation temporaire et renouvelable.
[1] Une analyse de la meilleure option de gestion du risque (RMOA pour Risk Management Option Analysis) est un outil d'aide à l'orientation pour la gestion d'un ou plusieurs risque(s) lié(s) à l'utilisation d'une substance : il justifie la pertinence - ou non - de proposer une mesure de gestion des risques (ou une combinaison de mesures). Telle qu'elle a été initialement conçue, une analyse RMO est une étape informelle, préalable à celle de la proposition formelle d'une mesure de gestion de risque (par exemple à travers la réalisation d'un dossier annexe XV de restriction ou d'identification SVHC pour les substances très préoccupantes). La conduite d'une telle analyse n'est pas une étape prévue par le règlement REACh, elle reste une action volontaire des Etats membres ou de l'ECHA. C'est également le format retenu par l'Anses pour analyser les substances inscrites à la SNPE, pour lesquelles une suspicion de danger existe.
[2] Le règlement REACh n°1907/2006/CE concerne l'enregistrement, l'évaluation et l'autorisation des substances chimiques (Registration, Evaluation and Autorisation of CHemicals). Il se base sur l'obligation des producteurs et importateurs de substances chimiques de fournir des données en fonction du tonnage de la substance qui a pour effet de renverser la charge de la preuve des autorités publiques vers l'industrie. En d'autres termes, il revient à l'industriel de démontrer que l'utilisation de sa substance peut se faire sans risques pour la santé humaine ou pour l'environnement.
[3] REACh prévoit une évaluation approfondie des substances pour lesquelles il existe un doute ou une préoccupation, dans le but de lever ou de confirmer ce doute, en permettant, le cas échéant, de demander des informations supplémentaires à l'industriel déclarant. Les évaluations sont alors menées sur une base volontaire par les Etats membres et peuvent conduire, en fonction des conclusions, à des demandes d'informations et/ou études supplémentaires. Si l'Etat membre évaluateur considère que les mesures de gestion des risques proposées dans le rapport sur la sécurité chimique ne permettent pas d'assurer la protection des personnes et de l'environnement, il peut proposer des mesures de gestion des risques supplémentaires à celles proposées par les industriels déclarants.
Source News Press
DATE : 2017-10-10
L'Agence nationale de sécurité sanitaire de l'alimentation, de l'environnement et du travail (Anses) publie son évaluation de 5 substances, dans le cadre de la stratégie nationale sur les perturbateurs endocriniens.pp
A l'heure où les effets des cocktails de molécules commencent à peine à livrer leurs (délétères) secrets, l'Anses publie les résultats d'évaluation de 5 molécules dans le cadre de la stratégie nationale sur les perturbateurs endocriniens (SNPE). Le TMBPF, le triclocarban, le RDP, le dicyclopentadiène et le sulfate d’étain sont-ils des perturbateurs endocriniens (PE)? C'est la question posée à l'agence, chargée d'expertiser au moins 5 substances par an entre 2014 et 2016. Les réponses sont contrastées, et parfois incomplètes.
Rapports. L'Anses publie également trois rapports consacrés à l’état des connaissances sur les usages, les sources d’exposition et la toxicité de plusieurs substances de la famille des polybromés, couramment utilisés comme retardateurs de flamme dans la fabrication de meubles et matériels électroniques. Objectif: caractériser les principaux effets toxiques en lien avec une exposition à ces composés et déterminer les sources majeures d’exposition humaine.
Le TMBPF entre dans la composition de substances chimiques à usage industriel principalement pour la fabrication de résines époxy utilisées pour le revêtement d’emballages métalliques légers pour conditionner tout type de denrées alimentaires, ce qui en fait un successeur du bisphénol A, que l'Anses avait déjà évalué en 2013. On le retrouve également comme matière première pour la fabrication des retardateurs de flamme polycarbonate et comme antioxydant dans les composés de caoutchouc. Selon l'Anses, il ne peut être écarté que le TMBPF puisse, pour l'homme, agir comme un PE par un mode d’action anti-androgénique ou par une signalisation via les récepteurs béta aux œstrogènes.
Pour le RDP (phosphate), présenté par l'industrie comme un retardateur de flamme 'alternatif' (il est utilisé dans le traitement ignifuge de plusieurs polymères et dans plusieurs applications d’ignifugation), le manque de données ne permet pas de conclure sur ses éventuels effets PE.
Substances. Quelles sont les substances au menu des investigations de l'Anses pour 2017?
L’homosalate, le triflusulfuron méthyl, le triphényl phosphate, le bisphénol B et le BDE-47. En 2014, ce sont le MTBE, le DEHTP, le DINCH, BHA et le méthyl parabène qui avaient été passés au crible. En 2015, c'était au tour de l’ATBC, du TBC, du BHT, de l'acide téréphtalique, méthyl-salicylate, amitrole et iprodione. Un dossier pour demander une restriction d’usage du bisphénol A en tant que substance extrêmement préoccupante au titre de sa toxicité pour la reproduction a été déposé en 2016 par la France auprès de l’Agence européenne des produits chimiques dans le cadre du règlement Reach.
Le triclocarban est principalement utilisé en tant qu’agent antibactérien et antifongique. A ne pas confondre avec le triclosan, contre lequel un appel de scientifiques renommés a été lancé pour exiger son interdiction mondiale. Sans hésitation, l'Anses estime que la substance a des possibles effets PE pour la santé humaine et l'environnement.
Nouvelles études à venir
Le sulfate d'étain est utilisé dans les secteurs de la construction (préparation pour ciment), dans l’industrie chimique, ainsi que pour la galvanoplastie. L'inanité et l'insuffisance des études disponibles rendent nécessaires de nouvelles investigations. Le dicyclopentadiène, dont le tonnage actuel est supérieur à 100.000 tonnes, est utilisé comme intermédiaire de synthèse pour la fabrication d’autres substances et en tant que monomère pour la fabrication de polymères. Il devra faire l'objet de nouvelles études, faute de pouvoir arriver à des conclusions sur ses effets sur la fertilité et le développement.
Source Journal de l'Environnement
DATE : 2017-10-05
Global methyl methacrylate (MMA) producers are looking into reinvestment in the industry, a number of sellers said on the sidelines of the 51st annual European Petrochemical Association (EPCA) meeting.
Margins for MMA sellers are said to be high, considering the number of price increases over the last year.
However, there have also been a series of planned and unplanned turnarounds, with some lengthy stoppages planned for next year.
Two new facilities are close to completion in the Middle East, with a total of 340,000 tonnes/year of fresh MMA capacity.
A 250,000 tonne/year facility is planned in the US for Mitsubishi Rayon, parent company of Lucite International. This is expected after 2022, using the Alpha technology, and will not include any downstream polymethyl methacrylate (PMMA) capacity.
Other producers also said they were looking into expansion, reinvestment, or new capacity.
Players estimated growth in the market at 100,000 tonnes/year, with demand either in line with or above GDP growth.
Global MMA supply remains short on the back of a series of planned and unplanned outages.
MMA is used in the manufacture of acrylic sheet, surface coatings, emulsion polymers and adhesives.
The annual EPCA meeting runs from 30 September to 3 October.
Source Icis News
DATE : 2017-10-05
European methyl methacrylate (MMA) players are questioning the impact of an increase in topanol-A use as a stabiliser in product, on the sidelines of the 51st annual European Petrochemical Association (EPCA) meeting.
In Europe, MEHQ (monomethyl ether of hydroquinone) is traditionally used as a stabiliser in the production of MMA, with some buyers unable to use topanol-A product.
The is because of company approvals and legislation against the use of topanol-A in food-based applications.
New capacity coming on stream in the Middle East uses topanol-A as a stabiliser, as do producers in Asia.
Given the tightness in the market, stabilisers have become a talking point throughout the year.
There have been a number of instances when buyers have been looking for product on the spot market, but were unable to accept it because of the stabiliser used.
Saudi Methacrylates Company (SAMAC), a joint venture between Mitsubishi Rayon (MRC) and Sabic, has a new plant in Saudi Arabia which has the capacity to produce 250,000 tonnes/year of MMA. It is in the late commissioning stage.
Some buyers are concerned about the high level of topanol-A used in its new product. It is twice the amount used in South Korean material and higher than the amount used in Chinese product.
The high amounts used are because of transportation purposes, although some buyers are concerned about what this means for use in production.
If there is a shift in the market to increased topanol-A use as a stabiliser, questions will also be asked about current approvals and legislation.
The annual EPCA meeting runs from 30 September to 3 October.
Source Icis News
DATE : 2017-10-01
BASF has encountered technical problems at its acrylic acid (AA) facility in Antwerp, sources in the European acrylates market said on Sunday.
Speaking on the sidelines of the 51st European Petrochemical Association (EPCA) meeting, sources said that the technical problems at the acrylic acid plant arose during a planned turnaround.
It was not yet clear how long the plant would take to recover.
BASF has the capacity to produce 320,000 tonnes/year of acrylic acid at the Antwerp facility.
Source Icis News
SINGAPORE (ICIS)--China plans to complete a massive relocation of chemical plants away from cities by 2025, but financial constraints may hamper the project, which is estimated to cost Chinese yuan (CNY) 800bn ($121bn), industry sources said.
The country intends to speed up the site transfer of plants manufacturing dangerous chemicals out of densely-populated city areas to industrial parks, based on a document released early this month by China’s State Council.
For small- to middle-sized plants, the relocation must start in 2018 and be completed by the end of 2020, while bigger plants are ordered to begin the process in 2020 and finish by end-2025.
China classification of plants | |||
| Small | Medium | Large |
Staff headcount | 20-300 | 300-1,000 | >1,000 |
Annual sales | CNY3m-20m | CNY20m-400m | >CNY400m |
These plants can also be re-engineered to produce non-toxic products, or permanently close if relocation is not possible.
Local governments in China are being required to submit detailed work plans, including company lists and timeline for relocation before the end of this year.
Given the huge investment the project entails, the relocation of the plants has the ability to boost China’s economic growth in the coming years, according to government officials.
The project is expected to translate to CNY400bn worth of demand for mechanical equipment, as well as generate about CNY60-80bn in information technology-related demand, based on estimates from China’s Ministry of Industry and Information and Technology.
Lack of funding has been the primary problem that has been preventing the project from taking off in a significant way. Industry players are of the opinion that the Chinese government must foot the total bill, citing that in most cases, the plants listed for relocation have been operating at their sites for years before the cities expanded.
But China has a huge fiscal deficit, which stood at CNY2.83trn ($427bn) in 2016, according to data from the country’s Ministry of Finance. The preliminary budget deficit was about 3.8% of China's GDP, according to estimates by newswire agency Reuters.
Since 2014, provincial governments have been submitting to the central government a list of toxic chemical plants up for relocation and/or re-engineering, in line with China’s embrace of more environmental-friendly policies.
China has stopped approving of construction or expansions of chemical plants in cities, requiring that all new projects have to be located in industrial parks.
However, the average implementation rate for relocations has been less than 20%, primarily due to lack of funds, industry sources said.
In the case of Shanghai Gaoqiao Petrochemical, which is a subsidiary of Chinese petrochemical giant Sinopec, initial discussions were held for its relocation in 2011, with completion originally expected by 2014-2015. But the negotiation process for the CNY60bn relocation took much longer than expected.
In mid-2016, the Shanghai government finally agreed to cover 90% of the cost by paying Sinopec CNY50bn for the relocation of Shanghai Gaoqiao Petrochemical but no further development was heard since, according to market sources.
Sinopec’s other subsidiaries, namely, Yanshan Petrochemical and Guangzhou Petrochemical, had also previously received request to transfer their production sites, which are located near cities.
Based on the new schedule drafted by the State Council, these super big plants will have to complete their relocation by 2020.
Industry sources said that actual financial support from the government was usually less than 10% of the total capital required, and comes in the form of land, low interest rates on loans and tax breaks. These were deemed not enough to speed up the project rollout.
“It’s too difficult for companies and governments to agree on terms of relocating. Who should pay for the bill? There’s no such a law that defines … responsibilities. No one would compromise,” said a source from the economic and information commission of Sichuan province in southwestern China.
Plants up for relocation with an original investment or current value of less than CNY100m receive no cash subsidies from the government.
Some 51 chemical plants in Sichuan need to be relocated, requiring a total capital outlay of CNY23.8bn, according to media reports. Only two of the total have completed the move, with two others underway, while the rest have no definite timelines.
In Shandong province, the biggest chemical production base in China, some 185 plants have been identified for relocation, 70 of which have started the process, according to a local government official.
The eastern province houses 9,505 chemicals producers, of which 2,485 are categorized as producing dangerous chemicals, the official said.
“The central government has agreed to provide financial support valuing CNY57.6bn for 42 of the relocations, but only 11 have materialized and the rest still pending. In one word, money decides the pace,” he said.
In Hubei province in central China, relocation projects are being stumped by lack of actual access to bank loans following assessment of risks, a local government official said.
“It’s a systematic task - very complicated. We all know what’s the problem, but, just no[t the] way to fix it,” the official said.
In the northern province of Hebei, which is adjacent to Beijing and where pollution is very severe, has moved quicker to implement the central government’s plan by providing both a list and timeline in August for plants that need to be relocated.
Based on its plan, a total of 35 plants will move out of cities before 2020. For 15 of them, the deadline was before December 2018, with three expected to complete the process as soon as March 2018.
But most of the companies in the list have yet to start the process, sources from the companies admitted.
In the case of Hebei Xinhua Holdings, it will have to spend nearly CNY1.5bn to relocate its production and it simply does not have the needed capital, a company source said.
It operates a 200,000 tonne/year methanol plant; a 50,000 tonne/year formaldehyde plant; and a 150,000 tonne/year of hydrogen peroxide plant at the Hebei capital city of Shijiazhuang and is being required to complete relocation by October 2019.
“We’re actually not in the very central area but in a county town. The industry park we’re moving to is just 4-5km away. I’m bewildered of the necessity to move,” the company source said.
Focus article by Fanny Zhang
Source: Icis News
26 September 2017 08:12
DATE : 2016-09-22
UK-based methyl methacrylate (MMA) producer Lucite International has declared force majeure (FM) on methacrylate monomers at its Cassel facility in the north of England, market sources said on Friday.
In a letter to customers seen by ICIS, Lucite said it regretted to inform customers that as a result of an unforeseen technical issue at the Cassel site it had no option but to temporarily shut down operations for an as yet unspecified period of time in order to resolve the situation.
The dispatch of MMA, methacrylic acid (MAA), and n-butyl methacrylate (nBMA) will be suspended with immediate effect until production at the Cassel site has been restored to a stable position.
Upon resumption of dispatches, available volumes of MMA, MAA and nBMA will be allocated to customers on a fair and reasonable basis, and in accordance with contract agreements.
The company tried to assure its customers that it is working to mitigate the impact on business and will continue to update its customers as the situation develops.
Lucite was unavailable for comment at the time of writing.
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.
MMA is used in the manufacture of acrylic sheet, surface coatings, emulsion polymers and adhesives.
Source Icis News
DATE : 2017-09-08
NEOS Oxide is planning to build a vinyl acetate monomer (VAM) plant with annual production capacity of 300,000 tonnes in Europe with capital expenditure (capex) between €100m and €500m, a spokesperson for the Switzerland-headquartered petrochemicals major said on 5 September.
“Our VAM project represents a further major investment for INEOS”, Graham Beesley, INEOS Oxide’s CEO
The spokesperson added the engineering studies being carried out at the moment would be finalised “during the course” of 2018, when the company would announce the final location for the plant. It expects to start up the plant in 2020 or 2021 at the latest, it added.
The company is considering to locate the new VAM plant at one of its three petrochemical sites – Saltend in the UK’s northern city of Hull, Koln in Germany or Antwerp in Belgium.
“As mentioned, the amount of the investment depends on the outcome of the work we are carrying out now but this will range from €100 plus million upwards.” INEOS had said earlier on 5 September the rationale behind the new VAM plant was the fact that Europe is short of that product, with imports “from remote locations” helping to ease the shortage.
Chemical trade figures from the European statistical agency Eurostat consistently show VAM’s demand in the region is mostly covered by imports, which largely outnumber exports.
VAM is a key building block for a wide range of industrial applications like paints, windscreens, films, adhesives as well as for production of polyvinyl chloride (PVC).
INEOS said the three locations considered for the project had access to feedstock ethylene through pipeline or terminal supply, as well as low costs to bring VAM’s other key raw material, acetic acid.
“Our VAM project represents a further major investment for INEOS and will commit the business to a spend in the hundreds of millions of euros, whether it is a new build, or a revamp of the former VAM production facility in Saltend, Hull,” said Graham Beesley, INEOS Oxide’s CEO.
“The market is at present heavily reliant on imports from deep sea locations, and our new capacity is designed to plug the gap and improve supply dependability to our customer base.”
VAM MARKET CALM AFTER HARVEY; POTENTIAL FOR HIGHER FUTURE PRICING
European vinyl acetate monomer (VAM) market reaction to potential fall-out from hurricane Harvey in Texas has continued to be fairly muted for prices in the near term, sources said on 1 September.
Expected increases in September are comparatively modest, and reflecting how suppliers read the changing dynamics of the market before the hurricane struck. However, while sellers generally appear to be targeting fairly small increments this month, the prospect for values further ahead is more pronounced.
Suppliers, along with other players, still see the situation in Texas as very unclear. For that reason, they seem to be adjusting their current price ideas mainly in line with those factors that were already apparent a week before. One said it was going out with a proposed increase on the back of changes in supply-demand fundamentals for September and costs increases before the damage to petrochemicals complexes around Houston.
While one large supplier believed it was “stupid” not to take into account the evident disruption caused by Harvey in setting price targets, while others maintained that there is a general lack of visibility at present.
One cited damage to pipelines, sufficient power supply and quality of stocks in storage tanks among a number of specific issues that needed to be appraised before it would be possible to assess the market impact of the current outages. However, all players acknowledged that there will likely be profound and widespread repercussions from the disaster.
LyondellBasell has declared force majeure on acetic acid and VAM in the US but has not yet done so for European customers, as stocks are currently available in the European market. A company executive acknowledged however that all theatres were likely to be affected as a result of the present crisis, which was not likely to go away any time soon.
The executive stated that the company is refraining from spot sales for the time being, emphasising that stability was the most important objective, with meeting obligations to loyal, regular customers therefore being a priority. Almost all other sellers are also abstaining from spot offers, although other motives, chiefly caution, are also playing a part.
A trader said, “Everyone is unwilling to offer. Everyone is sitting on their stocks and trying to consider the consequences [of Harvey] and for VAM it looks worse than on other products.”
Anticipated shortage of material will make stocks already in Europe very valuable, one supplier asserted. Another commented that he had hoped to retrieve the value of the re-imposed 5.5% EU import duty. “Now you can be…. sure we’ll try to get it back.”
Source Icis News
DATE : 2017-09-06
Supply concerns in the US acrylic acid and acrylates esters markets have eclipsed September price discussions for now, sources said, as buyers sought to ensure continued supply from producers affected by Hurricane Harvey.
While supply was foremost on the minds of buyers questioned after Harvey, a couple of customers said their suppliers have not cancelled orders confirmed before the storm, though there have been and will likely continue to be delays.
On Wednesday, Dow Chemical issued a letter to customers, increasing lead times by 10 days for all of its US monomer orders, including transit time, citing logistics constraints stemming from Harvey.
In the meantime, producers maintained volume-control measures this week:
* BASF continued force majeure on its acrylates and oxo-alcohols
* Arkema continued force majeure on its acrylates
* Dow Chemical continued 100% order control on its acrylates and other products
One producer said its operations were “limping back to normal,” with some truck and rail shipments resuming, production still at minimal levels and Houston-area ports having re-opened.
A second producer confirmed that its production rates were reduced to avoid exceeding containment capacity until shipping resumed.
Additionally, Arkema confirmed that the American Acryl plant in Bayport, Texas – its joint venture with Nippon Shokubai subsidiary NA Industries – was restarting following its closure ahead of Harvey’s landfall.
Tightened supply is expected to exert upward pressure on September free-market acrylates pricing. A seller said propylene increases in July and August would add to that pressure.
The seller also suggested October acrylates would move up on September propylene, which is being pressured higher.
But the US propylene contract price increased by a total of 1 cent/lb ($22/tonne) during July and August, which buyers have described as inconsequential.
No changes in US Gulf acrylates export spot ranges were heard this week, partly on a lack of material available for export during current domestic supply strictures, two producers said.
August rollovers held the ethyl acrylate (ethyl-A) range at 88-94 cents/lb 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.
US acrylates suppliers include Arkema, BASF, Dow and Sasol.
Source Icis News
DATE : 2017-09-05
Acrylonitrile (ACN) producer INEOS declared force majeure at its Green Lake plant in Texas, a source said on Tuesday, as a result of problems associated with Hurricane Harvey.
The plant was shut on 25 August ahead of the hurricane's landfall near Corpus Christi, Texas.
The source did not provide an expected date for the plant to resume production. It remains unclear to what extent the storm affected the plant.
Separately, Ascend Performance Materials, another major producer of US ACN, declared force majeure on 27 August.
The force majeure declarations are expected to cause major supply issues in the US ACN market.
Major ACN producers in the US include Ascend Performance Materials, Cornerstone Chemical and INEOS Nitriles.
Source Icis News