Home Latest News & Insights COVESTRO DECLARES FORCE MAJEURE

COVESTRO DECLARES FORCE MAJEURE

December 9, 2022
polycarbonate

Covestro declares force majeure (FM) on polycarbonate (PC) and other products from its site in Uerdingen, Germany.

The site apparently suffered an unexpected and severe damage of its electrolisis line. This has impacted several production plants, including MDI and PC.

Covestro’s PC plant in Uerdingen is seemingly the largest one in Europe, exceeding 300,000 metric tons per year.

As a result of the damage in Germany, Covestro has declared FM also on production from the compounding production in Filago, Italy. The capacity at Filago is 45,000 metric tons.

The FM comes at a time of oversupply of PC in Europe, according to GC Intelligence. As such, prices will likely suffer minimum impact in the short term. However, should the FM continue for weeks, the market will become tight and players could start to see some support on prices.