Petrotahlil - Formosa Plastics USA issued a force majeure on PVC supplies from its Texas and Louisiana plants, due to difficulties to produce the product amid upstream steam cracker problems, the company said in a letter to its customers dated Aug. 14.
"Formosa Plastics Corporation, USA, on behalf of Formosa Plastics Corporation, Texas, and Formosa Plastics Corporation, Louisiana, has experienced unexpected difficulties in its upstream facility at Point Comfort, Texas, impacting the PVC production at both manufacturing sites," the company said in the letter.
Formosa USA and Taiwan officials could not be reached for further comment.
Market sources in Asia said the Asian PVC market would likely remain firm in the near-term as spot supplies would tighten further after Formosa USA's force majeure.
On Aug. 12, the CFR China PVC price rose $20/mt week on week to be assessed at a five-month high of $840/mt, according to S&P Global Platts data.
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Source : Platts