04 January 2013 11:30 [Source: ICIS news]
LONDON (ICIS)--INEOS has declared force majeure on vinyl acetate monomer (VAM) supplies from its 300,000 tonne/year plant in Hull, UK, a company spokesman said on Friday.
The spokesman said: “I confirm we have declared FM [force majeure] on VAM due to a technical problem with the facility. I can not confirm any further information at this point.”
One of the producer’s customers said that force majeure was declared a week ago, and customers had been placed on supply allocation.
INEOS had said that the force majeure declaration was the result of a technical problem with a reactor, the buyer said.
The producer had said the problem could take up to 40 days to resolve, the buyer added. Another producer said it had heard the plant might not return to full operations until early February.
The second producer said it was too early to determine how much of a market impact the outage would have.
The buyer said it did not anticipate a major impact, although it acknowledged that some effect on spot prices was likely.
European VAM spot prices were assessed by ICIS on 21 December in the range of €800–840/tonne ($1,039–1,091/tonne) FD (free delivered) NWE (northwest Europe).
($1 = €0.77)
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