S American buyers seek Europe TDI because of FM at US plant

20 May 2011 00:25  [Source: ICIS news]

HOUSTON (ICIS)--Buyers of toluene di-isocyanate (TDI) in South America were inquiring about sourcing material from Europe on concerns over the US Gulf flooding and the impact on supply and prices, following a force majeure declaration by BASF, sources said on Thursday.

The flooding on the Mississippi river disrupted delivery of raw materials to BASF’s 160,000 tonne/year TDI plant at Geismar, Louisiana, the company said in a letter to customers dated 17 May.

BASF said that the force majeure on all its TDI products takes effect immediately, and the company will enforce allocation to customers with a retroactive implementation on 1 May.

The allocation, set in place for an undefined period, will be on “a fair and reasonable basis” and based on customers’ purchases over the past six months from November 2010 to April 2011, the company said in the letter.

For more on TDI visit ICIS chemical intelligence

By: Ron Coifman
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