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

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index