Asian 1,4 BDO for PU remains short despite BASF's restart

07 November 2000 07:27  [Source: ICIS news]

SINGAPORE (CNI)--The current shortage in Asian 1,4 butanediol (BDO) for application in polyurethane (PU) is likely to persist well into 2001, despite the October restart of BASF's unit in Yeochon, South Korea, and the start-up of a new unit by Formosa Plastics Group affiliate Nan Ya Plastics, according to Singapore-based industry analysts on Tuesday.

BASF, the largest 1,4 BDO maker in the region, has allocated the bulk of its output to spandex fibre applications and only smaller quantities for PU applications, the analysts said.

Meanwhile, Nan Ya is producing on-specification product from its new unit, which started up late October. However, quantities from Nan Ya are still small, and most of the output goes into captive use, the analysts said.

The upshot: supply of 1,4 butanediol for PU will remain short "for some time to come", as one analyst put it.

The analysts noted, however, that Nan Ya would likely increase output next year and offer product to third-party buyers.

By: Stefan Baumgarten
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly