US MA sellers see export opportunities after BASF force majeure

27 October 2009 22:22  [Source: ICIS news]

HOUSTON (ICIS news)--US maleic anhydride (MA) suppliers are positioning themselves to capitalise on export opportunities as a result of the recent force majeure at BASF's MA plant in Belgium, sources said on Tuesday.

US MA producers said additional inquiries have come in to send material to what could be a tight European market as well as from South American buyers supplied from Europe.

One supplier said recent orders have been placed from South American customers that coincided with the outage in Europe.

"It has resulted in more exports to South America," a supplier said. "It may result in more exports to Europe. I think Europe is waiting to push the button and [on] who they will push it with," the source added.

Sources said the length of the labour dispute that temporarily shut the plant down will likely determine whether US cargoes will start flowing across the Atlantic.

Workers walked out of the plant in Feluy, Belgium at the end of last week when BASF announced it would close the 115,000 tonne/year facility by the end of the year. The company subsequently declared force majeure.

"When you take 115,000 tonnes out of the market, it's going to have an effect," said a source who imports MA into North America. "The market is going to scramble over the next few months."

If workers do not return to the plant in the next few weeks, the situation could get tight in November and US suppliers could be called upon quickly for material, a supplier said.

Major US MA producers include Huntsman, Lanxess, Marathon and Flint Hills Resources.

For more on maleic anhydride (MA) visit ICIS chemical intelligence
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By: Ryan Hickman
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