01 June 2011 23:49 [Source: ICIS news]
HOUSTON (ICIS)--BP has lifted its force majeure on US acetic acid at a Texas plant, a source close to the company said on Wednesday.
BP markets all of the acetic acid produced by the 545,000 tonne/year Sterling Chemicals plant in Texas City, according to Sterling’s website.
BP declared force majeure in early May because of problems stemming from a power outage at the plant, sources said. The source close to BP did not give the date when the force majeure was lifted, but said that it had been ended in the past week.
The force majeure and its end may have been reflected by the rise and fall of US acetic acid free on board (FOB) spot prices in early and late May.
The acetic spot price rose $60/tonne (€41/tonne) after BP made the declaration early last month, reflecting a smaller supply of product available. The end of the force majeure may have contributed to the $55/tonne drop in the past week.
Acetic acid is primarily used to make vinyl acetate monomer (VAM).
($1 = €0.69)
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