Epoxy

March 4, 2021

New Update from The Gulf

US polymer prices extend post-freeze rises

Houston — US export polymer prices extended sharp upticks March 3 as hopes of a fairly quick return to normal output faded further in the aftermath of the deep freeze that enveloped the US Gulf Coast for days in mid-February, knocking a huge swath of petrochemical capacity offline.

Prices for multiple grades of US polyethylene reached multi-year highs week on week March 3 amid an acute lack of volume availability, strong demand and limited stocks, market sources said.

Spot export low density PE prices surged $210/mt on the week to $1,830-$1,852/mt FAS Houston, the highest level in more than 12.5 years, S&P Global Platts data showed.

High density blowmolding PE prices climbed $165/mt week on week to $1,642-$1,664/mt FAS, a near 6.5-year high. And linear low density PE prices also hit a 6.5-year high on the week, up $276/mt on the week at $1,654-$1,676/mt, Platts data showed.

US export polyvinyl chloride prices also were assessed March 3 at a fresh all-time high of $1,595-$1,605/mt FAS, on a deal done at $1,600/mt, with about 57% of US PVC capacity offline.

Latin American markets also felt the squeeze for products that regularly flow from the US.

The storm’s effects were much more widespread than hurricanes that routinely assault the US Gulf Coast each year, as 40 MW of Texas power generation was offline at the height of the freeze, leaving millions of structures from homes to industrial plants without heat or running water.

Petrochemical restart efforts have been slow, with many ups and downs, as downstream derivative units await reliable olefin feedstocks. Sources said those production chains need to restart sequentially.

Many sources don’t expect normalcy until deep into the second quarter.

“It’s going to be slow,” a source said. “Before everything is recovered, it’s going to be June.”

Here is a rundown of the fallout from the freeze:

FORCE MAJEURES

**Dow Chemical: Declared Feb. 19, on 2-ethylhexanol and butanol products from its Texas City, Texas complex

**Formosa Plastics USA: Declared Feb. 19 on US polyethylene

**BASF: Declared Feb. 19 on dioctyl terephthalate (DOTP), a plasticizer, at its Pasadena, Texas, site

**Westlake Chemical: Declared Feb. 19 on US caustic soda, chlorine, PVC and VCM; company has 2.9 million mt/year of US caustic soda capacity, more than 2 million mt/year of PVC capacity, 2.6 million mt/year of VCM; more than 2.26 million mt/year of chlorine capacity at five affected sites

**Formosa Plastics USA: Declared Feb. 18 on US PVC, 1.3 million mt/year of capacity at Point Comfort, Texas, and Baton Rouge, Louisiana, complexes.

**Dow Chemical: Declared Feb. 18 on multiple intermediate chemicals produced at plants in Deer Park, Freeport, Texas City and Bayport Texas, Hahnville, Louisiana, and Louisville, Kentucky; declaration includes vinyl acetate monomer (VAM), methyl methacrylate (MMA), glacial methacrylic acid (GMAA), butyl methacrylate (BMA), glycidyl methacrylate (GMA), 2-ethylhexyl Acrylate (2EHA), butyl acrylate (BA), and others; Dow informed South American customers

**Celanese: Declared force majeure Feb. 18 on multiple intermediate chemicals normally sold to customers in the US, Europe and the Middle East, including acetic acid, VAM, ethyl acetate and ethylene vinyl acetate (EVA)

**Total: Declared Feb. 17 on polypropylene produced at its 1.15 million mt/year La Porte, Texas, facility

**Formosa Plastics USA: Declared Feb. 17 on all chlor-alkali products

**LyondellBasell: Declared Feb. 16 on styrene monomer

**Vestolit: Declared Feb. 16 on PVC produced at its Colombia and Mexico plants on lack of upstream vinyl chloride monomer feedstock from US suppliers; plants have a combined 1.8 million mt/year of capacity

**Olin: Declared Feb. 16 on US chlorine, caustic soda, ethylene dichloride, epoxy, hydrochloric acid and other products produced at its Freeport, Texas, complex; ; on Feb. 18 Olin expanded the declaration in a separate letter to customers to include products made system-wide

**MEGlobal: Declared Feb. 15 on MEG produced at its Freeport, Texas, site

**LyondellBasell: Declared Feb. 15 on US polyethylene

**Flint Hills Resources: Declared Feb. 15 on polypropylene produced at Longview, Texas

**OxyChem: Declared Feb. 15 on US chlorine, caustic soda, EDC, vinyl chloride monomer and polyvinyl chloride.

**LyondellBasell: Declared Feb. 15 on US polypropylene

**INEOS Olefins and Polymers USA: Declared Feb. 15 on polypropylene

**OQ Chemicals: Declared Feb. 15 on US oxo-alcohols, aldehydes, acids and esters produced at its Bat City, Texas, operations

SHUTDOWNS

**Chevron Phillips Chemical, three crackers with a combined capacity of 1.36 million mt/year of capacity, Sweeny, Texas

**Westlake Chemical: 331,763 mt/year cracker, 249,475 mt/year chlorine, 274,423 mt/year caustic soda, 680,388 mt/year vinyl chloride monomer, 680,388 mt/year polyvinyl chloride, Calvert City, Kentucky

**Eastman Chemical: 730,000 mt/year ethylene capacity, Longview, Texas

**INEOS: 1.89 million mt/year of ethylene capacity, Chocolate Bayou, Texas

**LyondellBasell: 2.29 million mt/year of ethylene capacity in La Porte and Corpus Christi, Texas

**MEGlobal: 750,000 mt/year monoethylene glycol (MEG) plant, Freeport, Texas

**Total: 1.15 million mt/year PP, La Porte, Texas

**Lotte Chemical: 700,000 mt/year MEG, 1 million mt/year joint-venture cracker, Lake Charles, Louisiana

**Braskem: 225,000 mt/year PP, Seadrift, Texas

**ExxonMobil: Cumulative 1.53 million mt/year from three units, HDPE and LLDPE capacity, Mont Belvieu, Texas

**Indorama Ventures: 1 million mt/year ethylene oxide/MEG unit, 238,135 mt/year propylene oxide unit, and 988,000 mt/year of MTBE capacity; Clear Lake, Texas, 435,000 mt/year EO, 358,000 mt/year MEG; Port Neches, Texas

**Olin: Freeport, Texas complex, with 3 million mt/year of caustic soda and 2.73 million mt/year of chlorine capacity; 748,000 mt/year of EDC

**OxyChem: Ingleside, Texas, 544,000 mt/year cracker; 248,000 mt/year chlor-alkali; 680,000 mt/year EDC; Deer Park and Pasadena, Texas, 1.27 million mt in PVC capacity; 1.79 million mt/year of VCM capacity; 580,000 mt/year chlor-alkali

**Shintech: Freeport, Texas: 1.45 million mt/year PVC

**Formosa Plastics USA: Point Comfort, Texas, including three crackers with a cumulative capacity of 2.76 million mt/year; 875,000 mt/year of high density polyethylene; 400,000 mt/year of low density PE; 465,000 mt/year of linear low density PE; 798,000 mt/year of PVC; 1 million mt/year of caustic soda and 910,000 mt/year of chlorine; 753,000 mt/year of VCM; 1.478 million mt/year of EDC; and a cumulative 1.17 million mt/year of monoethylene glycol operated by sister company Nan Ya Plastics.

**Dow Chemical: Certain units offline within Dow sites along the US Gulf Coast, but the company did not specify. Dow’s Gulf Coast operations two LDPE units with 552,000 mt/year and 186,000 mt/year HDPE; Dow’s Seadrift, Texas, complex includes 490,000 mt/year LLDPE and 390,000 mt/year HDPE; Dow told South American customers in a letter dated Feb. 16 that the company was assessing impact on PE production capacity “and we know that our ability to supply various products could be affected.”

**Dow Chemical, 998,000 mt/year cracker, Freeport, Texas

**TPC Group: Houston site, including 544,310 mt/year butadiene unit, when boilers lost steam

**CP Chem: Pasadena, Texas, 998,000 mt/year HDPE

**CP Chem: 853,000 mt/year cracker, Port Arthur, Texas

**Westlake Chemical, 632,000 mt/year cracker, Lake Charles, Louisiana

RESTARTS

**Formosa Plastics USA, restarting PP production at Point Comfort, Texas, complex; has two PP units with combined capacity of 1.7 million mt/year

**Shell: restarting two crackers with a combined 961,000 mt/year of capacity, Deer Park, Texas

**OxyChem/Orbia, restarting 550,000 mt/year cracker, Ingleside, Texas

**LyondellBasell, restarting two crackers with a combined 1.93 million mt/year of capacity, Channelview, Texas

**CP Chem, restarting two crackers with a combined 1.9 million mt/year of capacity, Cedar Bayou, Texas

**CP Chem, restarting 853,000 mt/year cracker, Port Arthur, Texas

**Indorama Ventures, restarting 235,867 mt/year cracker, Port Neches, Texas

**Dow Chemical, restarting 680,000 mt/year cracker, Freeport, Texas

**Braskem: 360,000 mt/year PP Freeport, Texas; 400,000 mt/year PP, La Porte, Texas

**Motiva Chemicals: restarted 635,000 mt/year mixed-feed cracker, Port Arthur, Texas

**Shell: Norco, Louisiana, restarted two crackers with a combined 1.4 million mt/year of capacity

**Baystar Polymers: Restarting 408,000 mt/year HDPE unit at Bayport, Texas

**Flint Hills Resources: Restarting 658,000 mt/year PDH unit, Houston

**Dow Chemical: Restarting 750,000 PDH, Freeport, Texas

**Braskem: Restarting 450,000 mt/year PP, La Porte, Texas

**Dow Chemical: restarted 680,000 mt/year cracker in Orange, Texas

**ExxonMobil: Beaumont, Texas, restart activity begun; 826,000 mt/year cracker operational; 225,000 mt/year HDPE; 240,000 mt/year LDPE; 1.19 million mt/year LLDPE with some HDPE capacity

**ExxonMobil: Baytown, Texas, restart activity begun; three crackers with a combined capacity of 3.8 million mt/year; 800,000 mt/year PP

**Sasol: restarted 380,000 mt/year EO/MEG, Lake Charles, Louisiana

**Formosa Plastics USA: restarted 513,000 mt/year PVC, 653,000 mt/year VCM, Baton Rouge, Louisiana

**LyondellBasell: Lake Charles, Louisiana, joint-venture 470,000 mt/year LLDPE; 420,000 mt/year LDPE

PRICES

**Spot export HDPE blowmolding, LLDPE butene and LDPE prices all reached multi-year highs March 3 of $1,642-$1,664/mt, $1,654-$1,676/mt and $1,830-$1,852/mt, respectively, all FAS Houston.

**US export polyvinyl chloride prices reached a fresh all-time high March 3 on a deal done at $1,600/mt FAS Houston, up $200/mt on the week.

**West Coast South America PVC prices rose $140/mt week on week March 3 to a fresh all-time high of $1,695-$1,705/mt CFR WCSA on the lack of US volume availability

**The CFR Brazil PVC marker gained $100/mt week on week to $1,795-$1,805/mt, the highest in the world and a new all-time high since Platts began assessing the market in 2011.

**Brazilian import PP prices rose $110-$110/mt week to $2,000/mt for homopolymer and $2,050/mt for copolymer, fresh all-time highs since Platts began assessing the markets in 2011.

**March spot propylene prices plunged 17.75 cents/lb FD USG on the day March 3, while April propylene prices fell 16.75 cents/lb on the day to 59.50 cents/lb as restart efforts continued at two of three US propane dehydrogenation (PDH) units post-freeze.

https://www.spglobal.com/platts/en/market-insights/topics/appec-2020

March 4, 2021

More Acquisitions for Meridian Adhesives

Arsenal’s Meridian Adhesives Group acquires GENTEC and FT Polymer
DALTON, Georgia, March 3, 2021 – Meridian Adhesives Group (Meridian) announced today the acquisition of GENTEC and FT Polymer, two European-based adhesive suppliers for the electronics, medical, aerospace and automotive industries.
The companies’ range of products include adhesives, encapsulants, coatings, UV-curing technology and dispensing equipment. The two companies will be joining Meridian’s Electronics Division and working directly with Epoxy Technology Europe under the guidance of Nicolas Schwarz, Managing Director.
“After years of working with GENTEC and FT Polymer, we are excited to have these two well-established companies joining Meridian,” said Schwarz. “I am looking forward to the expertise they will bring to our Electronics Division.”
Both GENTEC and FT Polymer have long-standing reputations as leading partners with Meridian’s Electronics Division, which is comprised of Epoxy Technology, Inc., Epoxy Technology Europe, and Epoxies, Etc. GENTEC currently serves Belgium, The Netherlands and Luxembourg, while FT Polymer serves France, Morocco, Tunisia and Algeria.
“GENTEC and FT Polymer are trusted names in the electronic adhesives market in Europe,” said Daniel Pelton, CEO of Meridian Adhesives Group. “Adding them to our fast-growing Electronics Division will only serve to strengthen our team and enhance our global footprint. We are pleased to have them join us.”
The Electronics Division of Meridian Adhesives Group provides high technology products with experienced technical support. Epoxy, urethane, silicone and UV materials that are manufactured by Epoxy Technology and Epoxies, Etc. have been used in some of the most demanding applications. These companies are trusted partners of organizations throughout the world.
About Meridian Adhesives Group  Meridian Adhesives Group is a leading manufacturer of high-value adhesive technologies. With a broad portfolio of dynamic solutions, Meridian serves the electronics, infrastructure, flooring, packaging and product assembly markets. The group’s operations are located in the Americas and EMEA, with a multitude of sales/service offices worldwide that are positioned to serve Meridian’s global customer base. For more information, visit https://meridianadhesives.com. 
About Arsenal Capital Partners Arsenal is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, has completed more than 200 platform and add-on investments, and achieved more than 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. Visit www.arsenalcapital.com.

March 4, 2021

More Acquisitions for Meridian Adhesives

Arsenal’s Meridian Adhesives Group acquires GENTEC and FT Polymer
DALTON, Georgia, March 3, 2021 – Meridian Adhesives Group (Meridian) announced today the acquisition of GENTEC and FT Polymer, two European-based adhesive suppliers for the electronics, medical, aerospace and automotive industries.
The companies’ range of products include adhesives, encapsulants, coatings, UV-curing technology and dispensing equipment. The two companies will be joining Meridian’s Electronics Division and working directly with Epoxy Technology Europe under the guidance of Nicolas Schwarz, Managing Director.
“After years of working with GENTEC and FT Polymer, we are excited to have these two well-established companies joining Meridian,” said Schwarz. “I am looking forward to the expertise they will bring to our Electronics Division.”
Both GENTEC and FT Polymer have long-standing reputations as leading partners with Meridian’s Electronics Division, which is comprised of Epoxy Technology, Inc., Epoxy Technology Europe, and Epoxies, Etc. GENTEC currently serves Belgium, The Netherlands and Luxembourg, while FT Polymer serves France, Morocco, Tunisia and Algeria.
“GENTEC and FT Polymer are trusted names in the electronic adhesives market in Europe,” said Daniel Pelton, CEO of Meridian Adhesives Group. “Adding them to our fast-growing Electronics Division will only serve to strengthen our team and enhance our global footprint. We are pleased to have them join us.”
The Electronics Division of Meridian Adhesives Group provides high technology products with experienced technical support. Epoxy, urethane, silicone and UV materials that are manufactured by Epoxy Technology and Epoxies, Etc. have been used in some of the most demanding applications. These companies are trusted partners of organizations throughout the world.
About Meridian Adhesives Group  Meridian Adhesives Group is a leading manufacturer of high-value adhesive technologies. With a broad portfolio of dynamic solutions, Meridian serves the electronics, infrastructure, flooring, packaging and product assembly markets. The group’s operations are located in the Americas and EMEA, with a multitude of sales/service offices worldwide that are positioned to serve Meridian’s global customer base. For more information, visit https://meridianadhesives.com. 
About Arsenal Capital Partners Arsenal is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, has completed more than 200 platform and add-on investments, and achieved more than 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. Visit www.arsenalcapital.com.

March 4, 2021

Chemline Update

March 3, 2021

As Chemline continues to gather information on the rapidly changing polyurethane raw material market, we remain committed to transparent communication regarding the market challenges facing the entire supply chain.  Upstream feedstock suppliers are slowly beginning to restart facilities, with some Gulf Coast refineries and feedstock suppliers coming back online.  The restart and ramping up of these world-scale facilities takes time.  We are hopeful that the supply chain opens up in April.

Over the last week, Chemline has seen multiple confirmed raw material orders cancelled and more put in question.  No raw material suppliers will confirm orders going forward until there is better visibility on upstream supply.  Chemline’s existing inventories will allow for limited supply over the next few weeks.  We are reviewing incoming orders daily and confirming amounts based on our on-hand raw material inventory.  With the expectation that limited supply will become available in early April, we are pursuing all options to maintain supply through the second half of March including sparing no expense in acquiring raw materials through secondary channels.  Separately, our R&D department is focused on reformulation options based on inventories on hand.

As we look forward to April, supply should begin to normalize but inflationary pressures will create a different set of challenges.  Chemline is already seeing price increase announcements of 30-50% for April 1st across most raw material categories.  Our commitment is to do all possible to keep you supplied through this crisis and for the long term — we will pass along only costs that we cannot absorb, and only on a temporary basis.

Chemline takes very seriously our commitment to supply our customer base reliably and fairly.  All our time and resources are devoted to that commitment.  Thank you for your partnership as we work through this unprecedented challenge.

March 4, 2021

Chemline Update

March 3, 2021

As Chemline continues to gather information on the rapidly changing polyurethane raw material market, we remain committed to transparent communication regarding the market challenges facing the entire supply chain.  Upstream feedstock suppliers are slowly beginning to restart facilities, with some Gulf Coast refineries and feedstock suppliers coming back online.  The restart and ramping up of these world-scale facilities takes time.  We are hopeful that the supply chain opens up in April.

Over the last week, Chemline has seen multiple confirmed raw material orders cancelled and more put in question.  No raw material suppliers will confirm orders going forward until there is better visibility on upstream supply.  Chemline’s existing inventories will allow for limited supply over the next few weeks.  We are reviewing incoming orders daily and confirming amounts based on our on-hand raw material inventory.  With the expectation that limited supply will become available in early April, we are pursuing all options to maintain supply through the second half of March including sparing no expense in acquiring raw materials through secondary channels.  Separately, our R&D department is focused on reformulation options based on inventories on hand.

As we look forward to April, supply should begin to normalize but inflationary pressures will create a different set of challenges.  Chemline is already seeing price increase announcements of 30-50% for April 1st across most raw material categories.  Our commitment is to do all possible to keep you supplied through this crisis and for the long term — we will pass along only costs that we cannot absorb, and only on a temporary basis.

Chemline takes very seriously our commitment to supply our customer base reliably and fairly.  All our time and resources are devoted to that commitment.  Thank you for your partnership as we work through this unprecedented challenge.