INEOS shutdown could tighten supply of 99% industrial grade ethanol

16 October 2013 12:04  [Source: ICIS news]

LONDON (ICIS)--Supplies of 99% industrial grade ethanol could tighten following the shutdown of INEOS' Grangemouth petrochemical and refinery operations, sources said on Wednesday.

“All of this is driving customers to look for new suppliers. They want to increase the number of suppliers they have for back-up,” one source said.

“If we have a shutdown for a long period, we will see huge price increases due to tightness and shortages. However, we will likely see some importation after a couple of months to balance the market,” the source said.

“People are realising it’s not as easy as they thought to get alternative supplies,” another source said.

“We buy alcohols from them. We’ll probably have to go to [company name] who’d likely put the prices up,” one buyer said.

INEOS announced on Tuesday evening that it had started to take down production units in anticipation of a full shutdown on 20 October, following last week’s announcement of a 48-hour staff walk-out.

However, the strike was called off on Wednesday, with trade-union Unite citing the need “to protect national assets”.

It could take several weeks to bring the complex back online.

($1 = €0.74)


By: Sarah Trinder
+44 20 8652 3214



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