New From PetroChem Wire . . . .
NGLs Week is PetroChem Wire's comprehensive summary of price trends, upstream and downstream costs, operations news and supply/demand forecasts. The report contains everything you'll need to understand what's happening in the NGL markets.
For more information,
Formosa Plastics declares force majeure on certain PVC grades
HOUSTON, July 26, 2017 (PCW) -– Formosa Plastics Corporation today declared force majeure on several grades of its PVC resin, effective immediately.
On July 8, 2017, a VCM unit at Formosa’s Point Comfort, TX facility went down due to reasons the company has not confirmed. Customers said that as a result the plant was only operating at about 50% of capacity.
In a letter sent to customers today, the company said this event is causing a reduction in its production of Formolon 608, 614, 616K, 622R and 622S PVC resins. The letter further stated that Formosa was “declaring a Force Majeure/Excuse of Performance, effective immediately, for the aforestated products.”
The company had previously said that it would have enough resin to supply domestic customers with their normal August deliveries. It stated that it would not be exporting resin in August to either deep-sea destinations or to Mexico.
It was originally estimated that the VCM unit would be down for two weeks. However, in its letter to customers today, Formosa said the unit will be down for “at least the next several weeks”. Pipe grade customers said they will not be affected by this announcement and will receive their normal resin deliveries in August. -- Donna Todd