MOSCOW (MRC) -- Dow Chemical, the world's petrochemical major, has put order controls in place for vinyl acetate monomer (VAM), reported S&P Global with reference to a letter to US customers obtained Thursday.
The letter dated January 8 said, effective immediately, volumes will be based on previous monthly averages of purchased volumes, or limited to monthly maximum volumes specified in contracts. The letter does not provide details about how long the order control will be in place.
A Dow spokeswoman was not immediately available for comment.
VAM is derived from ethylene and acetic acid, and is a precursor to polyvinyl acetate, which is used to make glue.
Earlier Thursday, market sources said LyondellBasell Acetyls declared force majeure on supplies from its La Porte, Texas, facility.
As MRC informed earlier, in the first week of November 2019, Dow said the Glycol 2 plant at its Plaquemine, Louisiana, facility was in "recovery mode" after a vessel ruptured the morning of 3 November. The company says there were no injuries, nor have any offsite emissions been detected, and other production units at the site continue to run normally. The Glycol 2 plant includes an ethylene oxide production unit and downstream production of isopropanolamines and alkyl alkanolamines, according to a permit issued by the Louisiana Department of Environmental Quality.
VAM is the main feedstock for the production of ethylene-vinyl-acetate (EVA).
According to MRC's DataScope report, November EVA imports to Russia dropped by 8,9% year on year to 3,440 tonnes from 3,780 tonnes in November 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-November 2019 by 18,9% year on year to 35,95 tonnes (44,330 tonnes in the first eleven months of 2018).
The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene, polypropylene, and synthetic rubber.