05 March 2013 16:45 [Source: ICIS news]
LONDON (ICIS)--US-based epichlorohydrin (ECH) producer Momentive will shut its 90,000 tonne/year ECH plant in Pernis, the Netherlands, for four weeks from mid-March for annual maintenance, a source at the company said.
Momentive does not sell ECH, instead it uses all of it internally for epoxy resin production. However, the shutdown means they will need to buy ECH for the four-week period to ensure they have enough to run the epoxy resins plant.
This has resulted in Momentive scouring the market for ECH, along with Zachem's former customers, making the market tight.
A source at Momentive said the ECH market is very tight now and it is finding it very difficult to find enough material for the four-week shutdown. It said it even contacted suppliers in the US and Asia, but because of maintenance shutdowns and capacity cuts supply is problematic.
Another European ECH producer is going to shut down during March, but it preferred to remain anonymous. As a result of all the shutdowns, there is very little ECH left in the market which could result in further price increases and also influence downstream epoxy resins prices and supply in April.
($1 = €0.77)
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