Unplanned TDI outage cripples BASF US production

06 March 2008 18:57  [Source: ICIS news]

HOUSTON (ICIS news)--BASF has experienced an unplanned outage at its 160,000 tonne/year Geismar toluene di-isocyanate (TDI) plant in Louisiana that may not be resolved until April, sources said on Thursday.

The exact date of the outage was not known but market sources speculated that it occurred within the last week.

BASF declined to comment on issues relating to production. But buyers, traders and distributors confirmed that an unplanned outage has sent consumers in search of already-tight TDI supplies.

The market for the polyurethane feedstock has been finely balanced in recent months, with global demand outpacing supply as producers run plants at or near full capacity.

Preliminary information indicates a 2-4 week outage, which market observers say could drive domestic TDI prices above $5,000/tonne delivered (DEL) and may lend upward momentum to other polyurethane components, such as polyol.

Recent TDI prices were in a range of 190-196 cents/lb ($4,189-4,321/tonne) DEL in bulk and 199-207 cents/lb ($4,387-4,564/tonne) DEL for drummed material, according to data from global chemical market intelligence service ICIS pricing.

For more on BASF's Geismar TDI  plant, visit ICIS plants and projects

For more on TDI visit ICIS chemical intelligence

 

By: Landon Feller
+1 713 525 2653

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