Reichhold Announces Price Increase for Isophthalic Acid-based Resins
"This increase has been necessitated by sharp spikes in cost and limited supply of isophthalic acid," explained Reichhold's Director of Business Management Bill Schramm. "The sharply reduced availability of isophthalic acid was set into motion following Hurricane Rita which forced the closure of a major refinery, BP Amoco Chemical Company Texas City, which supplies a basic component of isophthalic acid, metaxylene, to U.S. producers of isophthalic acid.
"Flint Hills, which produces a significant portion of the isophthalic acid sold in North America, had been importing both metaxylene and finished isophthalic acid from Europe since Hurricane Rita, but those safety stocks are no longer viable, pushing isophthalic supply into a short position," Schramm continued.
"As a result, Flint Hills has declared Force Majeure and has notified customers that sales of this product are being put on allocation. This has also resulted in price increases for finished isophthalic acid."
Isophthalic acid is an intermediate for certain high-quality unsaturated polyester resins, providing excellent structural properties, corrosion resistance and weatherability in finished resins.
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