BP-sterling methanol startup
BP chemicals ceased being the only major acetic acid maker without a captive feedstock source late last month when its 150-million gal/year methanol joint venture with Sterling Chemicals came onstream at Texas City, TX. Most of the new plant`s output will feed Sterling`s 800-million lbs/year on-site acid plant; the rest will feed BP`s acetic production elsewhere or be sold in the merchant market. BP already markets all Sterling`s acetic acid production and holds an equity position in the acetic acid unit, the company says. Acetic acid producers are still smarting from their last failed attempt to increase prices, which foundered because anticipated strengthening in vinyl acetate monomer (VAM) did not occur. Based on their overconfidence in VAM, acetic acid sellers nominated higher third-quarter prices in the Far East then the market could bear. Customers balked and contracts settled lower than expected. The price slipped again in the fourth quarter. The US acetic acid market has been tight since the Hoechst Celanese outage at Clear Lake, TX last April, when sellers started pushing prices globally. Quantum also recently restarted its acetic acid complex at Deer Park, TX after a 60-day outage. The Far East is a global indicator and heavily influences other markets, analysts say. Third-quarter price increases in Europe did not go through, and fourth-quarter contracts stay flat at $560-$580/m.t. Prices are at about $500/m.t. in Taiwan and Korea. US producers saw third-quarter contracts edge up to 23 cts-25 cts/lb. Although the BP methanol plant will not be a big merchant seller, it does return some existing volumes to the market. Methanol has been firming in the fourth quarter, after a weak first half. Supplies worldwide are tight.
- OSTI ID:
- 526103
- Journal Information:
- Chemical Week, Journal Name: Chemical Week Journal Issue: 46 Vol. 158; ISSN CHWKA9; ISSN 0009-272X
- Country of Publication:
- United States
- Language:
- English
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