Operations at US Gulf Coast refineries and petrochemical plants have been disrupted this week by severe weather and flooding from Hurricane Harvey, leading to a wave of force majeure declarations and logistical issues. LyondellBasell declared force majeure on EO pure and EG, as it has curtailed production of these products at its Bayport facility in Texas due to Hurricane Harvey, it said in a letter to customers this week. Huntsman shut down operations at its Port Neches, Texas site this week due to impact from Harvey.
Spot MEG prices in Asia are rising based on concerns over spot availability of cargoes, following heavy plant shutdowns in the US in the wake of Harvey. Market participants said MEG cargoes from the US were unlikely to arrive in China, as inclement weather has battered the US Gulf Coast.