21 June 2013 19:06 [Source: ICIS news]
"There is a lot of speculation," a source said, echoing comments made by many others.
In reality, however, there is very little that has changed since LSB made its announcement on Monday after failing to successfully renegotiate its debts.
Artenius operates a 140,000 tonne/year unit at
The company also has a 200,000 tonne/year plant in San Giorgio di Nogaro in
In May, LSB subsidiary Artenius announced it would not be restarting its PET plant in
Artenius' new 150,000 tonne/year PET Simpe plant at
Industrias Quimicas Asociadas LSB (IQA), the ethylene oxide (EO)/ethylene glycol (EG) producer in
IQA has capacity to operate 100,000 tonnes/year of EG and 135,000 tonnes/year of EO at the site, according to ICIS data.
The news has not impacted the market, other than to cause speculation as to what will happen to EO/EG producer IQA, purified terephthalic acid (PTA) producer and PET feedstock provider Artlant PTA in Sines, Portugal, and successful preform manufacturer APPE, which comes under the LSB umbrella, should LSB go into receivership.
Many in the industry have been readjusting for months now to allow for LSB PET plant restrictions and/or closures.
LSB, which began refinancing its debts in September 2012, said it had been faced with a “bad market over the past two years, and in particular the oversupply, the high costs of raw materials and insufficient margins”.
"If we stay in limbo ... after two or three months, then there could be problems," an LSB source concluded.
There has so far been no sudden change.
There will perhaps be more of a reaction from markets once the insolvency is finalised, but for now the theories being discussed are just that - theories.
($1 = €0.76)
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