Dow has declared force majeure on all methylene diphenyl diisocyanate (MDI) products in the US, according to a customer letter.
The letter cited logistics and raw material constraints stemming from recent storms in the US Gulf as the reason for the declaration.
The US Gulf coast states of Texas and Louisiana, which contain the bulk of the country’s petrochemical infrastructure, have been impacted by several hurricanes and tropical storms during an active Atlantic hurricane season.
These storms have caused a number of chemical plants producing feedstocks and intermediates used in MDI production to experience shutdowns and have also disrupted logistics and transportation in the region.
MDI supplies have been tight recently both in the US and globally owing to some production disruptions along with improving demand.
According to the ICIS Supply and Demand Database, Dow operates a 340,000 tonnes/year MDI plant in Freeport, Texas.
MDI is consumed mainly in polyurethane foams, which account for about 80% of global consumption. Rigid foams, the largest outlet for MDI, are used mostly in construction, refrigeration, packaging and insulation. MDI is also used to make binders, elastomers, adhesives, sealants, coatings and fibres.
Major US MDI producers include BASF, Covestro, Dow and Huntsman.
By: Zachary Moore
CF Industries Holdings, Inc. (NYSE: CF) today announced that it has closed its acquisition of Incitec Pivot Limited’s (“IPL”) ammonia production complex located in Waggaman, Louisiana. Under the terms of the agreement, CF Industries purchased the Waggaman ammonia plant and related assets for $1.675 billion, subject to adjustments.
The Virgin Atlantic flight was powered entirely by SAF, that was a drop-in replacement for conventional jet fuel, but made solely from sustainable feedstocks. This was enabled through the inclusion of a new bio-based aromatic jet fuel blending component.
Cepsa SA (Madrid) has agreed a deal with C2X, an independent firm owned by AP Moller Holding with AP Moller-Maersk as minority owner, to develop a 300,000 metric tons per year renewable methanol plant at Huelva, Spain.