Core Viewpoint - BASF has declared a force majeure on the supply of ethylene glycol and related derivative products from its production site in Antwerp, Belgium, due to a technical failure that caused a key production unit to unexpectedly shut down [1] Company Summary - The Antwerp facility is a crucial supply center for ethylene glycol in Europe and globally, essential for producing polyester fibers, resins, and antifreeze [1] - BASF has not provided a specific timeline for the resumption of production and will communicate with customers regarding future supply arrangements based on contractual terms [1] Industry Summary - The force majeure event occurs against a backdrop of high energy costs in Europe and already tight chemical production capacity, which is expected to exacerbate the supply shortage of ethylene glycol and related downstream products in the region [1] - Short-term price pressures for ethylene glycol in the European market are anticipated, potentially leading to a chain reaction impacting the polyester industry and other related sectors [1] - BASF's team is working diligently to resolve the issues and restore supply as quickly as possible [1]
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