INEOS Acetyls idles three Hull plants amid high European gas costs

INEOS is mothballing all three world-scale Acetyls chemical intermediate plants in Hull, the last Acetyls units remaining in Europe, until further notice. Two plants have already stopped production and the third is due to go offline within a few days. The company cites European gas prices at 12 times US levels and 8 times Chinese coal-based production costs.

Key facts

Market context

Acetyls are a family of chemical intermediates, with acetic acid as the core product, that feed a wide range of downstream goods. Acetic acid and its derivatives are used to make vinyl acetate monomer for adhesives, paints and coatings, purified terephthalic acid for polyester fibres and bottles, and acetate esters used as solvents. Demand therefore comes from packaging, textiles, construction, pharmaceuticals, cosmetics and detergents. Because gas and coal set the cost of production, energy price gaps between regions largely determine which plants can compete. When a high-cost producer leaves the market, regional supply tightens, buyers often turn to imports from lower-cost producers, and contract prices can shift. Customers may also face longer supply chains and different product specifications when switching suppliers.

Source: official release on ineos.com. Summary and context written by Market Krystal.