AFPM '12: Williams declares force majeure on US ethylene – sources

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)


By: William Lemos
+1 713 525 2653



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