Dow Lifts Force Majeure on US MDI
Dow Chemical has lifted its force majeure on methyl di-p phenylene isocyanate (MDI) in the US, the company confirmed on Friday.
The force majeure was declared on 24 January at Dow’s 340,000 tonnes/year MDI plant in Freeport, Texas, following a period of severe winter weather in the US Gulf.
The US has been facing an extended period of tight MDI supply, with hopes that supply might soon normalise being dashed by forces majeure from both Dow and BASF following winter storm Inga.
BASF declared a force majeure on monomeric MDI (MMDI) from its 300,000 tonnes/year MDI plant in Geismar, Louisiana. This force majeure has yet to be lifted.
Persistent supply tightness has maintained upward pressure on US MDI prices throughout the past year. ICIS raised its US MDI assessments by a cumulative amount of 53 cents/lb ($1,168/tonne) since the start of 2017.
Major US MDI producers include BASF, Dow, Covestro and Hunstman.
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