20 December 2010 15:43 [Source: ICIS news]
LONDON (ICIS)--Momentive Specialty Chemicals has stopped production of bisphenol A (BPA) and epoxy resins at its facility in Pernis, The Netherlands, following a technical problem, a company source said on Monday.
The outage began on Thursday 16 December. Production was expected to resume on 24 December, the Momentive source added.
According to ICIS records, the Pernis plant has an epoxy resins nameplate capacity of 100,000 tonnes/year and a BPA nameplate capacity of 160,000 tonnes/year.
Demand in the European epoxy resins market was slowing as players looked to destock ahead of the year-end in order to lower gearing ratios, sources said.
Nevertheless, consumption of epoxy resins was stronger in December 2010 than in the previous year, according to market players. Local sellers’ estimates put demand in December 2010 at 10% above December 2009.
This was attributed to lower imports entering Europe, partly due to unattractive exchange rates. This increased the need for domestic producers to make up the shortfall.
Despite comparatively strong consumption, December contracts settled at a rollover from November at €2,700-2,800/tonne ($3,553-3,684/tonne) FD (free delivered) NWE (northwest Europe) for standard liquid, and €2,800-2,950/tonne FD NWE for standard solid, according to ICIS. This was attributed to destocking ahead of the year-end.
($1 = €0.76)
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