02 April 2012 00:40 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--US producer Williams declared force majeure on ethylene after a disruption at its Geismar cracker in Louisiana last week, market sources said on Sunday.
The cracker will be down for two weeks and the company will restrict supply at 50%, sources said on the sidelines of the International Petrochemical Conference (IPC).
Williams has a 612,000 tonne/year cracker in Geismar.
A company spokesperson has not responded to a request for comment and could not be contacted on Sunday.
The outage at Williams was a factor cited on Friday for a surge in US ethylene spot prices.
April ethylene traded at an unprecedented 75.00 cents/lb ($1,653/tonne, €1,240/tonne) for Williams delivery on Friday, up from a deal done at 69.50 cents/lb the previous day.
The deal on Friday is the highest spot transaction on the ICIS database, dating back to 1986.
US ethylene had previously traded in the low 70 cents/lb in July 2008 and prior to that at 74 cents/lb in November 2005.
Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC lasts through Tuesday.
($1 = €0.75)
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