Dow lifts global VAM force majeure and US sales control

20 August 2018 17:57 Source:ICIS News

HOUSTON (ICIS)--Dow Chemical ended its force majeure on vinyl acetate monomer (VAM) on Monday, lifting the declaration for Latin America, Europe, the Middle East, Africa, India and Asia Pacific, as well as the sales control on VAM in North America, the company said in a statement.

Dow lifted its VAM force majeure for North America in late July but left it in place for other global regions.

The VAM force majeure represented the second part of a chain reaction that rocked the global acetyl market earlier this year.

The first move came when BP declared force majeure in late April on VAM feedstock 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. BP supplies Dow with acetic acid.

BP lifted its force majeure on acetic acid in late July, and Dow lifted its declaration on North American VAM a few days later.

US VAM export prices have been dropping since Dow lifted its force majeure on North American VAM.

Vinyl acetate is used as a binder in paints. (Photo by imageBROKER/REX/Shutterstock)

By Lane Kelley