Evonik Industries restarts Marl butadiene extraction unit

15 April 2011 15:56  [Source: ICIS news]

LONDON (ICIS)--Evonik Industries has restarted its butadiene (BD) extraction unit at Marl, Germany, a company source said on Friday.

“Our BD extraction unit is back on stream, with on-spec BD since [Friday] morning,” the source said.

The source added that the company has no BD for the spot market, but it received an offer of $3,750/tonne (€2,588/tonne) FOB (free on board) ARA (Amsterdam, Rotterdam, Antwerp).

Production problems with the unit emerged in late February, which led Evonik to reduce the operating rates to 80-85% and then start a shutdown on 10 April.

The unit has the capacity to produce 220,000 tonnes/year of BD, according to the ICIS plants and projects database.

The April BD contract price settled at €1,690/tonne FD (free delivered) NWE (northwest Europe), up by €135/tonne from March. The hefty month-on-month increase reflected tight supply and strong demand, sources had said.

Price ideas for May contracts, given the current market fundamentals, are expected to be substantially higher than the April settlement price.

Some sources on the sell side said that initial ideas for the May contract would be around €1,800-1,850/tonne FD (free delivered) NWE (northwest Europe).

Negotiations will not start until next week for some market players.

($1 = €0.69)

For more on Evonik visit ICIS company intelligence
For more on butadiene visit ICIS chemical intelligence
Please visit the complete ICIS plants and projects database

By: Sian Jones
+44 20 8652 3214

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