Dow declares force majeure on US MDI

Author: Zachary Moore


HOUSTON (ICIS)--Dow Polyurethanes declared force majeure on all methyl di-p phenylene (MDI) products in the US, according to a customer letter obtained by ICIS on Wednesday.

The letter pointed to severe weather in the US Gulf during winter storm Inga as the primary reason for the force majeure.

Dow operates a 340,000 tonnes/year MDI plant in Freeport, Texas.

US MDI buyers had been hoping to see some stabilisation in supply following an extended period of supply tightness over the past several months. However, Dow’s force majeure declaration along with some scheduled turnarounds during the first quarter may keep supply tight over the weeks ahead.

ICIS raised its US MDI assessments by a cumulative amount of 53 cents/lb ($1,168/tonne) over the course of 2017.

Major US MDI producers include Dow, BASF, Huntsman and Covestro.