Chemours announced that it has suspended titanium dioxide production at its Altamira, Mexico, plant due to severe drought in much of Mexico.

The company said it was complying with government requirements to temporarily reduce water withdrawals to protect water use in surrounding communities. Previously, both Orbia and INEOS Styrolution issued statements announcing the temporary closure of plants in Altamira that produce products such as polyvinyl chloride (PVC) and acrylonitrile-butadiene-styrene (ABS) due to drought. Chemours is working with government, business and community partners to identify and implement short-term and long-term solutions. Chemours said it could not predict the duration of this incident.

According to S&P Global, Orbia's Vestolit subsidiary closed the Altamira PVC plant and declared force majeure due to reduced water supply. Since then, Platts PVC prices have been rising, rising to $800 per ton on May 29 and to $50 per ton this week. The company's Altamira PVC plant is said to have a production capacity of 690,000 tons/year.

INEOS Styrolution said that due to water shortage, its 190,000 ton/year ABS plant in Altamira was also forced to close, and declared force majeure for various ABS polymer grades produced by the plant. On May 29, the Platts price of Houston ABS fell slightly to $1,847.47 per ton, down $30.87 for the week.