The European ABS market suffers yet another major setback that squeezes supply further.
INEOS Styrolution declares FM on ABS because of the shortage of acrylonitrile (ACN), according to reliable sources.
The FM applies to INEOS Styrolution’s ABS Novodur and Novodur High Heat (HH) brands.
The force majeure (FM) at the company’s plant in Cologne, Germany, is to do with the shortage of ACN from INEOS Nitriles.
The key feedstock ACN became very short after INEOS Nitriles declared FM in December.
And the recent bad weather in Germany is also understood to have complicated matters.
The INEOS Nitriles FM is also affecting other ABS producers in Europe that rely on its ACN supply.
The European ABS market suffered a multitude of disruptions since Q4 that has squeezed supply considerably.
As the situation continues to worsen it is forcing some companies to either drastically reduce or completely halt production due to the lack of ABS raw material.