LONDON (ICIS)--Imported volumes of butanediol (BDO) are not significant enough to prove a threat to European suppliers, a producer in the region said on Tuesday.
“Regarding imports [from the Middle East], it's a drop in the ocean in terms of volumes,” the source said. “Imports are no threat to European producers.”
This was in response to the unconfirmed arrival of delayed Saudi Arabian imports into Europe, which according to BDO buyers recently, would ease European market tightness.
A distributor agreed that the arrival of the delayed volumes would have little impact on the market: “I don't think this will have a big effect on the market, volumes are not significant enough to make a difference.”
Furthermore, looking ahead, fewer BDO imports from Saudi Arabia could arrive into Europe following news of Sipchem Chemicals planning to start up a new polybutylene terephthalate (PBT) plant later this year, the producer added.
ICIS reported on 10 March that Sipchem Chemicals plans to start test runs at its new PBT resin plant located in Jubail Industrial City during the fourth quarter of 2014.
The PBT plant will be using butanediol (BDO) produced by Sipchem affiliate – International Diol Co – as primary feedstock, which enables Sipchem to utilise the rest of its integrated products and strengthen value added chain, Sipchem said.