August 26, 2024 – The recent production disruption at BASF’s Ludwigshafen site has garnered widespread attention. According to the latest disclosure on BASF Group’s official website, the company has initiated communications with its clients, sharing a preliminary timeline for resuming production in response to market concerns about the resumption schedule.
BASF stated that once the facilities are restarted, product manufacturing will follow a staggered process. Based on current information, it is anticipated that fragrance raw materials will be the first to resume production. However, some fragrance products may only commence production after October 2024, while others might have to wait until before the end of November 2024. Shortly after, the production of Vitamin E, Vitamin A, and carotenoid products is expected to begin, with an estimated start date not earlier than January 2025.
Moreover, several chemical plants in Europe and Japan have recently announced closures or delayed restarts. Following the shutdown of European facilities by SABIC and ExxonMobil earlier in the year, Japan’s Mitsui Chemicals has also shut down its 610,000-ton ethylene plant due to technical issues, with the restart date yet to be determined. Simultaneously, other Japanese cracking plants face closures or delayed restarts.
According to the Color Masterbatch Industry Network, the European chemical industry in 2024 has continued the trend from the previous year, with multiple companies choosing to suspend or permanently close their European plants in response to the challenging market conditions. This series of events have had profound impacts on the global chemical industry, potentially causing fluctuations in market supply and prices. Relevant businesses and markets need to closely monitor these developments to address possible risks and opportunities.