LONDON (ICIS)--European butanediol (BDO) market players are taking different stances on the potential impact of a three-week shutdown of Ashland’s plant in Marl, Germany, in September, sources said on Tuesday.
According to one supplier, the shutdown will tighten local supply.
“Three weeks is a long time. Ashland has some significant exposure to the market that won't be covered easily,” said the source, adding:
“There is only a few weeks to go until the shutdown, which is a limited time to react.”
The company announced in its Q3 earnings presentation on 1 August that it is planning to shut down its plant in September for maintenance to replace a piece of equipment.The producer will undergo a full turnaround that will last approximately 21 days, the statement said. Ashland has the capacity to produce 100,000 tonnes/year of BDO from its Marl facility.
“Our planned September shutdown is for routine maintenance as these BDO plants regularly require. We have been planning for this outage for some months already,” Ashland told ICIS.
According to a buyer, global BDO supply is long and local production issues could be easily covered by imports coming from Asia and the US.
However, Invista, a US-based producer, active in importing material into Europe, announced force majeure in mid-June.