HOUSTON (ICIS)--Dow Chemical declared a global force majeure on vinyl acetate monomer (VAM), citing production issues related to an external supplier of raw material, according to a company confirmation obtained on Friday.
Dow said the force majeure would last “approximately two months”.
A market source attributed Dow’s declaration to BP’s force majeure at a US acetic acid plant in Texas in late April.
BP said in its April force majeure statement that all discretionary sales of acetic acid at the plant had been terminated. BP said the force majeure stemmed from an expected delay in repairs needed in critical equipment by the plant's carbon monoxide feedstock supplier.
Acetic acid is the major feedstock for VAM.
Additional reporting by Peter Gerrard