Strike ends at BASF’s Feluy MA plant; force majeure lifted

11 November 2009 17:01  [Source: ICIS news]

LONDON (ICIS news)--The strike at BASF’s 115,000 tonne/year maleic anhydride (MA) plant at Feluy, Belgium, has ended and the company has lifted its declaration of force majeure, a spokesman for the German chemical major confirmed on Wednesday.

Workers returned to the Feluy site on 9 November, with the plant restarted and brought out of force majeure on the same day, the spokesman said.

The spokesman would not confirm what led to the end of the industrial action.

The strike and force majeure began on 22 October following BASF’s announcement that it intended to exit the MA market at the end of 2009 and close the plant, affecting 133 jobs.

“Negotiations [with worker unions] over the plans to stop MA production at the end of the year are ongoing,” the company spokesman added.

The European MA market was in tight supply prior to the forced shutdown at the Feluy plant, and spot prices have increased by up to €200/tonne ($299/tonne) since 22 October as a result of BASF’s announcement to leave the MA market, market sources said.

Liquid spot MA was currently trading at €1,400-1,500/tonne FD (free delivered) NWE (northwest Europe), a rise of €200/tonne since 22 October, sources said.

Flake spot material was at €1,300-1,400/tonne FD NWE, a rise of €100/tonne since 22 October, sources said.

Market players said they expected the European MA supply situation to remain tight throughout 2009 despite the restart of the Feluy plant.

MA buyers and sellers said they were still trying to assess the impact of BASF’s plans to stop MA production at the end of 2009.

For 2010, MA buyers said they were currently trying to ensure supply, while sellers said they were expecting supply next year to remain tight because of BASF’s exit from the MA market.

Buyers said they expected the shortfall to be filled by imports and producers restarting idled plants.

Both buyers and sellers said they were expecting European producers to focus on liquid production next year, with the flake market to become import-based because it could be shipped easily.

($1 = €0.67)

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By: Mark Victory
+44 208 652 3214

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