Dow lifts force majeure on US VAM at Texas plant

23 October 2008 23:26  [Source: ICIS news]

HOUSTON (ICIS news)--Dow Chemical has lifted the force majeure (FM) on US vinyl acetate monomer (VAM) at its plant in Texas City, Texas, a buyer said on Thursday.

The plant had resumed operation following critical equipment repairs that had delayed start up following Hurricane Ike, according to a customer letter that the buyer received.

Dow officials did not immediately return phone calls seeking comment.

The letter added that customer sales would be restored to levels in place prior to the FM announcement.

The Texas City plant and four others in and around Houston provide all of the VAM production in the US. All of the plants were shut down prior to Ike, which struck on 13 September.

Most of the plants have restarted, though Celanese's Clear Lake plant will soon begin a month-long turnaround.

Dow said in the customer letter it delayed the restart of the Texas City plant due to an "unforeseen critical equipment failure" that has now been repaired.

US VAM contract prices were assessed at 67-71 cents/lb (1,477-1,565/tonne or €1,152-1,221) and FOB (free on board)  export prices at $1,250-1,300/tonne, according to global chemical market intelligence service ICIS pricing.

Major US VAM producers include Dow, Celanese, DuPont and LyondellBasell.

($1 = €0.78)

For more on Dow's Texas City, visit ICIS plants and projects
For more on vinyl acetate monomer, visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Lane Kelley
+1 713 525 2653

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