Dow's Terneuzen polyols problems continue but impact is limited

22 January 2014 15:44  [Source: ICIS news]

LONDON (ICIS)--The ongoing production problems at Dow’s polyols plant in Terneuzen, the Netherlands, has had little impact on the flexible polyols market, sources said on Wednesday.

On Tuesday, the company confirmed the mechanical issue remains unresolved.

“Our problem is still continuing,” a company source said. “[We are] running the flexible polyols asset at a reduced rate.”

Buyers in the market said the consequences of the reduced production rate from Terneuzen have been muted thus far.

“[There] was a hiccup in supply because of Dow’s problems [but our needs were] covered by others in the market,” a buyer said.

Today, another producer said it had received additional orders but this did not significantly impact its order books or price structure this month.

“We have received extra orders we were not expecting but we could not take all of them,” the producer said. “Unfortunately, we could not increase prices for January [but] we will definitely increase prices by a minimum of €50/tonne in February and add on top [any potential propylene feedstock increases].”

The consensus in the market is that supply has been hampered by Terneuzen but the market is not tight.

Last week, the flexible polyols monthly contract price for January rolled over from December at €1,760-1,830/tonne FD (free delivered) NWE (northwest Europe).

Additional reporting by Heidi Finch

By: Stefan Naidu
+44 208 652 3214

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