Dow lifts force majeure on N America VAM but not globally

Source: ICIS News


HOUSTON (ICIS)--Dow Chemical lifted its force majeure for vinyl acetate monomer (VAM) on Wednesday in North America but left it in place for other global regions.

“The force majeure will continue for VAM in the Latin America, Europe/Middle East/Africa/India and Asia Pacific regions,” Dow said in a 25 July statement.

Dow’s statement also said it will implement sales control immediately on VAM in North America.

Lifting of the Dow force majeure on VAM comes a week after BP lifted its force majeure on major feedstock acetic acid.

BP declared force majeure in late April on US acetic acid because of issues with a carbon monoxide supplier at a Texas plant.

Dow’s declaration came about two weeks later, saying in a 17 May statement that it would be unable to supply VAM for “approximately two months”.

Earlier this month market sources said Dow’s VAM plant in Texas City, Texas was operating on a limited basis and offering material to some customers.

The two force majeures represented a chain reaction in the acetyls market, raising acetic acid and VAM prices in the US and Europe, although in Asia prices have dropped or stayed flat during the past two months.