SABIC IP announces FM on ABS in North America, Taiwan's FCFC running at 50%

30-Jul-08

Under pressures of feedstock shortage, SABIC Innovative Plastics has declared force majeure (FM) on ABS and SBR products in North America. Compelled by prolonged tight supply from butadiene (BD) producers, SABIC IP has put acrylonitrile-butadiene-styrene (ABS) and styrene-butadiene-rubber (SBR) customers on 75% sales allocation, with amounts based on order history during the past six months. While increasing focus on the automotive sector, Dow Chemical has departed from the general ABS market. INEOS had scheduled a two week maintenance shutdown at its 160,000 tpa plant in Ohio in August. Taiwan's Formosa Chemicals & Fibre Corporation (FCFC) is operating its 300,000 tpa ABS plant at 50% capacity after the company has restored normal operations after a total outage caused by a fire in mid June. But bearish ABS market sentiments and persistent sluggishness has coerced the company to reconsider increasing run rates for the near future.