BASF was forced to close the factory! Raw materials have to go up again!

Recently, BASF issued an urgent letter stating that the supply of n-butanol in Ludwigshafen, Germany had encountered force majeure and was forced to close the factory and start repairs, so it had to allocate the supply of n-butanol.

BASF SE, Ludwigshafen, Germany, 67056, to all n-Butanol customers:
Dear customer: We regret to inform you that BASF must immediately declare force majeure for the supply of n-butanol until further notice.

Our plant's n-butanol production device encountered unforeseen technical problems. In order to remedy, we were forced to close the factory and immediately start necessary repairs.

This incident is beyond the reasonable control of BASF and has affected our ability and obligation to supply you with n-butanol in accordance with the contract. Currently we will have to allocate the supply of n-butanol.

We apologize for the inconvenience caused to your company. Please rest assured that we will continue to make every effort to reduce the impact of this shortage. The account manager will contact you shortly. If you need more information, please feel free to contact us. We apologize for this and thank you for your patience.

N-butanol (NBL), also known as butanol, is an important organic chemical raw material, mainly used in the production of coatings and adhesives, and can also be used as a raw material for other derivatives. According to public information, there is a certain gap in the supply and demand of my country's n-Butanol market. Therefore, my country's n-butanol imports have increased in recent years. By 2019, the import volume of n-butanol is about 215,000 tons, an increase of 8.6% year-on-year. In terms of demand, the current demand for n-butanol in my country is still growing. In 2019, the market demand for n-butanol was 2.25 million tons, a year-on-year increase of 9.8%. The global production of n-butanol is mainly concentrated in the United States, Europe, Japan and other places. The main producers are Dow Chemical, Celanese, Eastman, BASF, Japan Kyowa Chemical Company, Mitsubishi Chemical Company, etc. BASF has an annual production capacity of 450,000 tons of n-butanol in Ludwigshafen, Germany, so it occupies an irreplaceable position in the industry.

BASF's supply of n-butanol in Ludwigshafen, Germany, is subject to force majeure, which will affect the downstream Butyl Acrylate (BA) and butyl methacrylate (BMA). Some chemical companies said that if there is a chain reaction, it will also affect the price trend of hydroxyethyl acrylate HEA, hydroxypropyl acrylate HPA and other esters.

The closure of major factories, high overseas freight, and the impact of the OPEC agreement on international oil prices, the 50 yuan/barrel mark on the oil station at the Buenos Aire Station will put pressure on it again on the cost side and increase the price of isobutanol. All kinds of foreshadowing. Industry insiders predict that the domestic n-butanol market is expected to increase in the next step, and n-butanol may sweep the "haze" into the rising team. The supply of n-butanol as a solvent for coating products will undoubtedly "add fuel to the fire" for the price increase of the coatings industry.