On March 21st, a source from Huntsman said that market participants of crude diphenylmethane diisocyanate discovered that Huntsman's Rozenburg plant in Netherlands, which had previously reported breaking news in November, is currently being sold due to production problems. control.
“It is not yet clear how long this will last, but during this period the company is doing its best to limit the impact on customer operations. ' The source added.
It is unclear how much production capacity there is at the production site.
Supply has been short-term before, Covestro Germany had declared force majeure on the production of isocyanates throughout Europe due to raw material nitric acid supply problems.
Covestro is expected to resume full production on December 11.
Before Huntsman issued the news, one market participant had stated that the stock was extremely limited, and even if the demand could not be met in the off-season, the price could rise further.
The reduction in production capacity will only exacerbate the situation of insufficient supply to drive up prices.
One source said that although some suppliers' quotes rose by up to three digits, some also showed only slight increases.
The current situation of tight supply in the market is divided.
Market participants are unlikely to agree on price levels until it is clear what impact Huntsman’s production problems have on regional supply. A buyer of Huntsman stated that the early stage has not yet found any impact on delivery.
With the emergence of a series of problems in the fourth quarter, there may be significant differences between monthly and quarterly prices.
According to sources, this may cause problems for future quarter buyers.