Hurricane 'Florence' landed on the North and South Carolina coast of the United States on Thursday night, attacking the core area of the US polyester fiber industry. There are three world-class plants producing raw terephthalic acid (PTA) in the region, as well as many downstream Polyester fiber producers. Intense storms and severe flooding will cause several days of production and delivery disruptions.
Due to BP and Alpek's force majeure statement, the market for terephthalic acid (PTA) has been tight. BP operates two PTA plants in Cooper River, South Carolina, with a total capacity of 1.3 million tons per year. Alpek is in the South. Columbia, Calif., has a 640,000 tonne/year PTA plant. Tison Keel, research director/analyst at IHS Markit, said: 'Since the beginning of July, PTA's market conditions have caused polyethylene terephthalate (PET) and poly Tension supply of ester fiber. '
Keel said that the impact of the storm on logistics may have a greater impact on market conditions in September. He noted that rail and truck services in North Carolina and South Carolina were suspended on September 12.
He said: 'A major glycol storage terminal for the industry is located in Wilmington, North Carolina. The current hurricane center track shows that the landing site is very close to that city. ' He added: 'Materials and finished products The delivery problem will last for several days. If critical railway sections and roads are submerged or destroyed, the problem may last for several weeks. The supply chain of PET, polyester and key raw materials is tight and will almost certainly be affected, but The extent and length of time remain to be seen.'