Solvay French adiponitrile plant encounters force majeure

The price of PA66 will rise after the festival. Solvay announced that the adiponitrile plant in France had encountered force majeure. According to the latest announcement of PIE(Plastic Information Europe), an authoritative website of the European plastics industry, Solvay announced on February 16, 2018 that its adiponitrile plant in Chalamp, France had encountered force majeure. We believe that this incident is expected to further aggravate the global PA66 industrial chain, which is already tight in supply and demand. Solvay France Chalamp has an adiponitrile production capacity of 520000 tons/year, which is the world's largest adiponitrile production unit and the only one in Europe, accounting for 1/3 of the world's total production capacity. Solvay and Invida each jointly invested 50% of the construction. (Guojin Securities Research Institute), welcome to join the modified nylon WeChat group;

 

Force majeure is a strike?

On February 15, due to the strike of a large adiponitrile factory in Chalampe, France, the supply of raw material adiponitrile and downstream hexamethylene diamine was difficult. Solvay, a special chemical manufacturer, announced force majeure. Its Chalampe factory belongs to Solvay P & I (Polyamide and Intermediates) Division and has been acquired by BASF, a global chemical giant. It is the largest KA oil and adipic acid production base in Europe and adipic acid. It is Rhodiacid intermediates registered by Solvay by Solvay, core products include nylon 66.

BASF: PA 6.6 force majeure continues

BASF announced force majeure on polyamide products on January 24 and continued as of February 14.

 

Source: https://www.kunststoffweb.de/ki_ticker/BASF_PA_6_6-Force_Majeure_in_Seal_Sands_besteht_weiterhin_t239039,能看懂的这段的粉丝翻译留言吧

Why does adiponitrile affect everyone's heart?

Adiponitrile is a colorless oily liquid, flammable, mainly used in the production of nylon 66, in addition, can also be used in rubber accelerator and rust inhibitor, also used as detergent additives, ternary copolymer spinning solvent, and other textile auxiliaries, etc., is a highly dependent on imports of varieties, China's current production capacity of adiponitrile is zero.

The main application fields of nylon -66 are industrial yarn, cord fabric, automobile, electronic and electrical machinery industry and other fields. At present, the main application process in the world is synthesized by hexamethylene diamine and adipic acid, and adiponitrile is the raw material for the production of hexamethylene diamine. At present, China's nylon 66 polymerization enterprises are currently using hexanedinitrile imported from large foreign companies, mainly for the United States Invida, so they can adjust the supply of hexanedinitrile to control the global production of nylon 66.

Industry Review: Solvay France's hexanedinitrile plant announced force majeure, PA66 supply and demand tensions are expected to intensify.

The following sources [Guojin Chemical] PA66 industry reviews;

The global oligopoly of hexanedinitrile will exacerbate the tension between supply and demand in the industry: as the most important raw material in the PA66 industry chain, the global production of hexanedinitrile is mainly concentrated in companies such as Nvidia, Solvay, Asorde and Asahi, which is a highly oligopoly product. The announced force majeure device is the world's largest, Europe's only hexanedinitrile production capacity, affecting the global 1/3 supply at the same time all European PA66 producers of raw materials supply is limited, for the industry supply side of the impact. Taking into account the previously announced force majeure capacity superimposed on the limited supply of raw materials in Europe, the industry supply and demand gap is estimated to reach 80-1 million tons (based on the global capacity of 3 million tons of native slices).

This event will continue to have a chain reaction to the European PA66 industry chain: regarding this force majeure announcement, Solvay still cannot estimate the duration and declared it "a severe event". At the same time, it announced that all downstream PA66 polymer plants will be affected (including France and Spain polymerization capacity and Germany capacity that have previously announced force majeure); At the same time, because this device is the main raw material supplier of BASF PA66 salt, it also makes the resumption of production of the BASF plant, which was previously declared force majeure, and taking into account the slicing production capacity of small factories such as Landy in Europe, the limited supply of hexanedinitrile has caused an unprecedented impact on the PA66 industrial chain in Europe, and the continuous chain reaction of the industrial chain will further aggravate the supply and demand tension in the industry.

Benefiting from the continued improvement in global supply and demand in overseas economic recovery slices: PA66 demand in the engineering plastics sector has maintained a high growth rate in recent years. On the one hand, the demand side of the European and American economies continued to recover and China and other economies to maintain strong growth, on the other hand, due to the slow rate of expansion of key intermediates led to the supply side of the product in recent years has not seen a significant growth, the overall supply and demand pattern of the industry continued to improve. The global primary chip production capacity is about 3 million tons, the annual demand is between 240 and 2.5 million tons, and the global demand growth rate is still around 4%.

High domestic external dependence European supply constraints will greatly limit domestic supply: domestic PA66 is still heavily dependent on imports, in recent years, the expansion of domestic production capacity at the same time industry imports to maintain a stable external dependence remains high. As the force majeure production capacity is mainly concentrated in China's main import place-Europe, in the context of the continuous fermentation of the chain reaction of the European PA66 industry chain, it will further limit the total supply of domestic products and aggravate the domestic supply and demand tension.