COLLIERVILLE, Tenn. - AOC will increase prices by US $0.03 per pound on all isophthalic-based products sold in the United States and Canada shipped on or after May 1, it reported in a recent statement.
The BP Texas City refinery was one of the facilities affected by Hurricane Rita and remains closed, according to AOC. It formerly supplied Flint Hills with metaxylene to produce purified isophthalic acid (PIA), which is used in the manufacture of certain resins and gel coats. BP has been purchasing mixed xylenes and has recently tried to start up their paraxylene plant where metaxylene would be produced, but they have not been successful to date, AOC reported.
Flint Hills has been supplying the U.S. market from their Geel, Belgium, plant through Charleston, S.C., and by shipping metaxylene from Europe to Joliet where PIA can be produced. All of Flint Hill's safety stock has been depleted, and the company was forced to declare force majeure and allocate PIA for April, according to AOC. As delays in getting the BP refinery running have continued, the allocation has extended into May, resulting in a higher cost for all PIA-related resins and gel coats.
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