BASF declares force majeure on BDO from Ludwigshafen

01 June 2011 11:34  [Source: ICIS news]

LONDON (ICIS)--BASF has declared force majeure on supplies of butanediol (BDO) from its site at Ludwigshafen, Germany, following a fire on 30 May in a precursor plant, a company source said on Wednesday.

BASF, which produces 190,000 tonnes/year of BDO at Ludwigshafen, declared force majeure on 31 May after the fire disrupted the production of the feedstock acetylene, the source said.

The BDO plant is now idle and technicians are investigating the situation, the source added.

Supplies of tetrahydrofuran (THF), polytetrahydrofuran (PTHF) and n-methylpyrrolidone have also been affected, the source said.

In Europe, demand for BDO in the second quarter has been strong. Sources say offtake is healthier than expected, and requests for additional material are being denied because of limited availability.

Second-quarter European BDO contract prices rose by €200/tonne ($290/tonne) from the first quarter to settle at €2,050–2,100/tonne FD (free delivered) NWE (northwest Europe), because of tight supply and strong demand.

Global BDO supply is expected to tighten further as a result of the unplanned outage at Ludwigshafen.

BASF’s production of polybutylene terephthalate (PBT) at the site was not affected by the fire, the source said.

($1 = €0.69)

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By: Helena Strathearn
+44 208 652 3214

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